{"id":85,"date":"2024-03-11T07:33:10","date_gmt":"2024-03-11T07:33:10","guid":{"rendered":"https:\/\/reports.anglogoldashanti.com\/23\/ar\/view-from-the-top\/ceo-review-and-outlook\/"},"modified":"2024-04-29T15:03:51","modified_gmt":"2024-04-29T15:03:51","slug":"ceo-review-and-outlook","status":"publish","type":"post","link":"https:\/\/reports.anglogoldashanti.com\/23\/ar\/view-from-the-top\/ceo-review-and-outlook\/","title":{"rendered":"CEO review and outlook"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h3 class=\"wp-block-heading\">Dear shareholders<\/h3>\n\n\n\n<p>As I reflect on 2023, a year that presented both significant challenges and remarkable achievements for AngloGold Ashanti, I am struck by the extraordinary resilience of our people and the greatly improving prospects of our business. This was a year marked by decisive action, a clear reset of our corporate structure, and ultimately, substantial progress toward delivery on our commitments.<\/p>\n\n\n\n<p>We continued our strategic journey to safely regain the cost competitiveness that had been lost by the Company in recent years. It is with pride and humility that I can report a strong safety performance, which is not only our priority but also the bedrock of our strategy. In 2023, we reported a 13% improvement in our total recordable injury frequency rate to 1.09 injuries per million hours worked and a second consecutive year with no fatalities at the mines and plants we operate. We are among the safest mining companies anywhere and will spare no effort to ensure we can continue that performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Corporate restructuring<\/h3>\n\n\n\n<p>The most significant milestone of 2023 was the successful corporate restructuring of the business, which has seen the transition of our primary listing to the NYSE, our headquarters to Denver and our official domicile to the UK. This places us directly in the world\u2019s leading capital market, and the largest equity market for gold shares, among the world\u2019s most highly valued producers. We believe this will, in time, lower our cost of capital and position us well for future growth opportunities.<\/p>\n\n\n\n<p>We also recognise that this redomiciliation is only one step \u2013 albeit an important one \u2013 in the process of achieving a fundamental revaluation of the Company relative to our North American peers which have long traded at higher valuations. Alongside the fundamental improvements we are making \u2013 in both an absolute sense and relative to these peers \u2013 we believe the new structure will in time enable AngloGold Ashanti to trade and be valued more in line with this peer group.<\/p>\n\n\n\n<p>I am grateful to South Africa\u2019s financial and market regulators for the manner of our engagement, in particular the care taken to understand our unique circumstances and strategic requirements. We retain an important corporate office in Johannesburg that services many parts of our larger business, and a secondary listing on the JSE, in Johannesburg, which remains a deep and well-regulated capital market for us. This retains our link to Africa, host to important production and future growth, and source of exceptional talent in our business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delivery on commitments<\/h3>\n\n\n\n<p>Given the old saying that trust is earned in teaspoons and lost in buckets, it\u2019s been a priority for me \u2013 and for my colleagues across the organisation \u2013 to make good on our commitments, including our market guidance. I\u2019m encouraged that we remain one of the few large gold producers to have met our gold production and total cash cost guidance during a period in which we, like many in the industry, have faced fierce inflationary headwinds and the usual assortment of production challenges and interruptions. <\/p>\n\n\n\n<p>The complex pivot to concentrate processing at Cuiab\u00e1, in Brazil, to allow for additional engineering and technical work during 2023 at our Calcinados TSF to meet international safety standards currently considered best practice, could have ended hopes of achieving production targets were it not for the site team\u2019s extraordinary recovery to meet budget. In May, at Siguiri, a faulty weld made more than a decade ago caused the failure of a carbon-in-leach tank in the plant, curbing production for several weeks while repairs were effected. Again, a resilient site team completed the job ahead of schedule, and by year-end volumes had returned to near-normal run-rates.<\/p>\n\n\n\n<p>At Obuasi, poor ground conditions in very high-grade areas forced us to slowdown mining during the final third of the year, as we took the decision to prioritise safety over ounces and change the mining approach. While this was important to mitigate safety risk in parts of the mine and caused a reduction in expected production in 2023 and 2024, the recovery was well on track by the end of the year, and the long-term investment case and operating profile for this important mine remain very much intact.<\/p>\n\n\n\n<p>While input price increases slowed in the US and other developed markets as higher interest rates did their work, it should be noted that inflation remained worryingly high in many developing markets.<\/p>\n\n\n\n<p>This array of challenges \u2013 along with other, smaller setbacks \u2013 were ultimately offset in large part by better understanding of our orebodies (a product of higher sustaining capital investment), and improved planning and operating discipline from our site teams who were able to find incremental efficiencies from our Full Asset Potential Programme (FP). While we are determined to bend the curve on cost increases in an absolute sense, as we bring in new, lower cost production, we have made significant strides in closing the relative performance gap with our major peer group. We know there is more to do, and we are equal to that task.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Focus on growth<\/h3>\n\n\n\n<p>Another major milestone in 2023 was the important discovery made by our own teams at the Merlin deposit in Nevada. At a gold Inferred Mineral Resource of 9.1Moz at attractive grades, this is the largest new gold discovery in the US in more than a decade and is likely to be a game changer for the Company. Our total Mineral Resource in southern Nevada, a short drive along the highway from metropolitan Las Vegas and in the heart of one of the world\u2019s largest and most regulated mining jurisdiction, is now 16.6Moz, with the potential for more growth.<\/p>\n\n\n\n<p>The proposed joint venture we announced in March in Ghana, bringing together our Iduapriem mine and Gold Fields\u2019 Tarkwa mine to create potentially Africa\u2019s largest Tier 1 gold mine, is expected to create longer-term value, not only for AngloGold Ashanti and Gold Fields but for the combined stakeholders in our local host communities and for all of Ghana.<\/p>\n\n\n\n<p>This combination puts together two parts of the same world-class orebody, allowing us to share skills and infrastructure to significantly enhance every aspect of this mining operation, from exploration and planning to mining and processing. We continue to engage with our stakeholders in the country to ensure the value proposition is well understood as we seek regulatory approval to formalise and advance this new partnership.<\/p>\n\n\n\n<p>AngloGold Ashanti\u2019s discount relative to our peers has meant that we have had to develop a strong exploration capability to ensure we fill our growth pipeline with high-quality options at a reasonable cost. We are among the industry\u2019s most successful explorers, growing our Mineral Reserve by 25% over the past six years and by 14.4Moz before depletion over the past four years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Safety first at Obuasi<\/h3>\n\n\n\n<p>We remain intent on realising the tremendous value of the potential of the Obuasi orebody in Ghana, and are aiming to ramp up this operation to a sustainable steady state annual&nbsp; production run rate of more than 400,000oz by 2026 onwards, with tier one costs. This remains a fabulous asset and will become one of our centrepiece operations for the next two decades.<\/p>\n\n\n\n<p>Obuasi\u2019s migration to the more selective underhand drift and fill mining method in very high-grade areas, where ground conditions are challenging, is expected to take place throughout 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Decisive action<\/h3>\n\n\n\n<p>Taking firm action on our underperforming assets has been another hallmark of the year. In August we announced that the C\u00f3rrego do S\u00edtio (CdS) mine in Brazil would be placed on care and maintenance. The mine had for a sustained period reported challenging operating results characterised by poor production and costs that remain well above the gold price. CdS was unable to either sustain itself or to fund the capital needed to ensure its long-term future and could not be cross-subsidised indefinitely by our better performing mines.<\/p>\n\n\n\n<p>In a similar vein we sold our stake in the Gramalote joint venture to B2Gold, aiding the consolidation of ownership in a project that had, despite several years of studies and evaluation, not progressed to a decision point. We remain active managers of our portfolio and do not shirk difficult decisions as we seek to achieve a rerating in our stock.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Decarbonisation<\/h3>\n\n\n\n<p>In 2022, we announced a plan to cut Scope 1 and 2 greenhouse gas emissions by 30% by 2030 (versus 2021 baseline) by implementing a combination of renewable energy projects and initiatives to improve efficiency and\/or use lower-emission power sources.<\/p>\n\n\n\n<p>In 2023, we took another major step forward in our decarbonisation journey as we entered into an agreement to build one of the largest renewable energy projects in Australia\u2019s natural resource sector and integrate it into the power supply of our Tropicana mine. This agreement with Pacific Energy will see the establishment of 62MW of wind and solar generation capacity at the site, some 330km east-northeast of Kalgoorlie in Western Australia. This project is another important step forward for us, not only in helping us realise our overall climate objectives, but also in improving overall energy supply security and significantly reducing the site\u2019s natural gas consumption. It builds on the momentum of the project started last year at the Geita mine in Tanzania, which is replacing diesel generation at site with grid power sourced from a more environmentally friendly combination of energies including hydropower and natural gas.<\/p>\n\n\n\n<p>Shareholders are invited to engage with our annual Sustainability Report that we have published simultaneously with this Annual Report, and in which we elaborate on the material sustainability matters most relevant to our business,&nbsp; what we are doing to maximise the opportunities they present and to minimise and mitigate any risks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Looking ahead<\/h3>\n\n\n\n<p>Our focus areas for the year ahead are deceptively simple.<\/p>\n\n\n\n<p>The first is to keep our people safe. The second is to meet guidance and maintain a strong balance sheet. We will also work to achieve the ramp-up at Obuasi and to advance the required permitting for North Bullfrog, the first of our Nevada operations to advance to production. We will also work to further optimise costs and combat inflation, which threatens to erode the hard work of improving efficiency, margins and the benefit of higher gold prices. We will remain focused on actively managing our portfolio of mines. Intertwined with these efforts is the vital task of improving our social licence to operate, shorthand for reducing our environmental footprint and increasing the benefits of our activities felt by the communities that host our operations.<\/p>\n\n\n\n<p>This is a modest list and the very definition of doing the basics right. It will require enormous effort, dedication, initiative and ingenuity from an AngloGold Ashanti team that is among the very best in the mining business. We will spare no effort in again delivering on these objectives.<\/p>\n\n\n\n<p>In closing, I offer thanks to my colleagues across the business for their unstinting effort in making good on our commitments. Equally, I\u2019m grateful to the Board for its counsel and continued diligence in overseeing the delivery on our strategy, which remains invaluable.<\/p>\n\n\n\n<p><strong>Alberto Calderon<\/strong><br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-primary-color\">Chief Executive Officer<\/mark><\/strong> <br>10 April 2024<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-stretch is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-cover has-custom-content-position is-position-bottom-left\" style=\"padding-top:0;padding-bottom:0;min-height:800px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim wp-block-cover__gradient-background has-background-gradient has-black-to-transparent-gradient-background\"><\/span><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"1280\" class=\"wp-block-cover__image-background wp-image-2040\" alt=\"\" src=\"https:\/\/reports.anglogoldashanti.com\/23\/wp-content\/uploads\/2024\/02\/ceo-letter-alberto-calderon.jpg\" style=\"object-position:50% 36%\" data-object-fit=\"cover\" data-object-position=\"50% 36%\" srcset=\"https:\/\/reports.anglogoldashanti.com\/23\/wp-content\/uploads\/2024\/02\/ceo-letter-alberto-calderon.jpg 640w, https:\/\/reports.anglogoldashanti.com\/23\/wp-content\/uploads\/2024\/02\/ceo-letter-alberto-calderon-360x720.jpg 360w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"has-naartjie-color has-text-color has-link-color has-x-large-font-size wp-elements-d91c1e8ff5f6aba251c9c878b5960218\" style=\"line-height:1.1\"><strong>Repositioning for the safe delivery on our commitments<\/strong><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dear shareholders As I reflect on 2023, a year that presented both significant challenges and remarkable achievements for AngloGold Ashanti, I am struck by the extraordinary resilience of our people and the greatly improving prospects of our business. This was a year marked by decisive action, a clear reset of our corporate structure, and ultimately, substantial progress toward delivery on our commitments. We continued our strategic journey to safely regain the cost competitiveness that had been lost by the Company [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-85","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-view-from-the-top"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CEO review and outlook - Reporting Suite 2023 | AngloGold Ashanti<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/reports.anglogoldashanti.com\/23\/ar\/view-from-the-top\/ceo-review-and-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CEO review and outlook - Reporting Suite 2023 | AngloGold Ashanti\" \/>\n<meta property=\"og:description\" content=\"Dear shareholders As I reflect on 2023, a year that presented both significant challenges and remarkable achievements for AngloGold Ashanti, I am struck by the extraordinary resilience of our people and the greatly improving prospects of our business. This was a year marked by decisive action, a clear reset of our corporate structure, and ultimately, substantial progress toward delivery on our commitments. We continued our strategic journey to safely regain the cost competitiveness that had been lost by the Company [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/reports.anglogoldashanti.com\/23\/ar\/view-from-the-top\/ceo-review-and-outlook\/\" \/>\n<meta property=\"og:site_name\" content=\"Reporting Suite 2023 | AngloGold Ashanti\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-11T07:33:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-29T15:03:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/reports.anglogoldashanti.com\/23\/wp-content\/uploads\/2024\/02\/ceo-letter-alberto-calderon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"katherine@rasc.co.za\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"katherine@rasc.co.za\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/\"},\"author\":{\"name\":\"katherine@rasc.co.za\",\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/#\\\/schema\\\/person\\\/bdba0e30aab74fe01cccf0ed20ddfe80\"},\"headline\":\"CEO review and outlook\",\"datePublished\":\"2024-03-11T07:33:10+00:00\",\"dateModified\":\"2024-04-29T15:03:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/\"},\"wordCount\":1847,\"publisher\":{\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/wp-content\\\/uploads\\\/2024\\\/02\\\/ceo-letter-alberto-calderon.jpg\",\"articleSection\":[\"View from the top\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/\",\"url\":\"https:\\\/\\\/reports.anglogoldashanti.com\\\/23\\\/ar\\\/view-from-the-top\\\/ceo-review-and-outlook\\\/\",\"name\":\"CEO review and outlook - 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