{"id":126,"date":"2025-01-29T11:16:38","date_gmt":"2025-01-29T09:16:38","guid":{"rendered":"https:\/\/reports.anglogoldashanti.com\/24\/?p=126"},"modified":"2025-03-25T19:39:14","modified_gmt":"2025-03-25T17:39:14","slug":"cfos-report","status":"publish","type":"post","link":"https:\/\/reports.anglogoldashanti.com\/24\/ar\/view-from-the-top\/cfos-report\/","title":{"rendered":"CFO\u2019s report"},"content":{"rendered":"\n<div class=\"wp-block-columns msg-intro has-light-silver-gray-opacity-background-color has-background is-layout-flex wp-container-core-columns-is-layout-a5cf46d6 wp-block-columns-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--40)\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"has-teal-color has-text-color has-link-color wp-elements-b6c5bbf6e27b3a0651d1768afd17cc10\" style=\"font-size:clamp(1.453rem, 1.453rem + ((1vw - 0.2rem) * 1.184), 2.4rem);font-style:normal;font-weight:400\">Setting the stage for sustained growth and unparalleled value creation<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"398\" height=\"373\" src=\"https:\/\/reports.anglogoldashanti.com\/24\/wp-content\/uploads\/2025\/01\/ldr-gillian-doran-1.png\" alt=\"\" class=\"wp-image-2551\" srcset=\"https:\/\/reports.anglogoldashanti.com\/24\/wp-content\/uploads\/2025\/01\/ldr-gillian-doran-1.png 398w, https:\/\/reports.anglogoldashanti.com\/24\/wp-content\/uploads\/2025\/01\/ldr-gillian-doran-1-300x281.png 300w\" sizes=\"auto, (max-width: 398px) 100vw, 398px\" \/><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p class=\"has-large-font-size\">I am pleased to reflect on a year where AngloGold Ashanti has not only navigated economic challenges but has also continued laying the foundations for accelerating growth, cost efficiencies and value creation on a sustainable basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-b8bb93c7002ed9b0c949ab7e36fa2682\">Navigating economic turbulence and capitalising on gold\u2019s strength<\/h2>\n\n\n\n<p>The macro-economic landscape presented challenges, with fluctuating currencies and shifting inflation rates, yet we remained steadfast. Gold&#8217;s role as a safe-haven asset has again been reaffirmed, closing the year at $2,624\/oz, up 27%, driven by central bank buying, monetary easing, global economic uncertainties and geopolitical tensions.<\/p>\n\n\n\n<p>Our expert management of diverse economic environments, supported by effective tax strategies across 11 jurisdictions, reinforced our strategic resilience and adaptability in the face of global headwinds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-8c74dd4b8fff392d184591cdc4efd4f9\">Embracing an unhedged future<\/h2>\n\n\n\n<p>As of 31 December 2024, all of our gold hedges have expired, leaving AngloGold Ashanti completely unhedged starting 1 January 2025. This move positions us to fully benefit from any future rises in gold prices and underscores our confidence in our ability to manage economic fluctuations independently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-f3578a14da06944bcfc7de8464c9f768\">Driving operational excellence and cost efficiency<\/h2>\n\n\n\n<p>We achieved guidance on production and total cash costs<sup>APM<\/sup> while coming in marginally above guidance on AISC<sup>APM<\/sup>. The solid gold production performance from AngloGold Ashanti\u2019s managed operations, alongside continued implementation of the Full Asset Potential (FAP) programme and increased vigilance on expenditures at the site level, delivered a strong overall cost performance despite persistent inflation across several of our operating jurisdictions.<\/p>\n\n\n\n<p>The Australian operations rebounded from climatic adversities, while Brazilian activities showed notable upswing post the Queiroz plant&#8217;s restart. Continued optimisation at Obuasi aligns with revised mine plans, enhancing production efficiencies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-374a0be7e379523cadb04568742da3fe\">Transforming financial health with strategic discipline<\/h2>\n\n\n\n<p>In just over two years as CFO, I have witnessed firsthand the significant impact of our finance initiatives in reshaping our cost competitiveness. We have fostered a culture of cost discipline that transcends dependencies on gold price fluctuations, driving this mindset throughout AngloGold Ashanti. With a relentless focus on cash conversion and the management of working capital, we have solidified our financial foundation.<\/p>\n\n\n\n<p>The FAP programme underpinned the strength in cost management, keeping Group total cash costs<sup>APM<\/sup> tightly controlled with only a 4% increase to $1,157\/oz in 2024, up from $1,115\/oz in 2023. Managed operations demonstrated resilience with a rise of just 2% to $1,187\/oz, echoing our commitment to cost control. The 4% increase in the average unit total cash cost<sup>APM<\/sup> was less than the aggregate Group inflation rate of about 7%. Inflationary pressures were partially offset by favourable exchange rate movements.<\/p>\n\n\n\n<p>All-in sustaining costs<sup>APM<\/sup> (AISC) increased by 4% to $1,611\/oz, reflecting our ongoing commitment to investing in operational sustainability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-d9e7f7759d8535e7b7f1167787289ee0\">Enhancing portfolio quality<\/h2>\n\n\n\n<p>Our focus on the Brazilian operations led to a turnaround here, particularly with the resumption of processing operations at the Queiroz plant. This prompted the reversal of impairments of $60m for our Cuiab\u00e1 operations, linked to Queiroz&#8217;s past suspension. No new impairment triggers were found for our other operations.<\/p>\n\n\n\n<p>AngloGold Ashanti\u2019s sale of its Yatela mine interests to the Malian government in October 2024, along with the subsequent conclusion of the sale processes, has marked the end of our mining presence in Mali.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-e12742a97c1023534d5ae8ca32e46ddf\">Strategic growth and shareholder value<\/h2>\n\n\n\n<p>The successful acquisition of Centamin plc, finalised on 22 November 2024, marks a strategic milestone and another step on the path of accelerating growth. This net $2bn combination, involving cash and AngloGold Ashanti shares, bolsters our global footprint and operational efficacy, enhancing our long-term outlook in key markets.<\/p>\n\n\n\n<p>In alignment with this strategic expansion, our revised capital allocation framework and dividend policy are designed to deliver enhanced shareholder returns. By targeting a 50% payout of free cash flow<sup>APM<\/sup> (subject to maintaining an adjusted net debt<sup>APM<\/sup> to adjusted EBITDA<sup>APM<\/sup> ratio of 1.0x), which includes a base dividend of $0.50 per share per annum, we are ensuring predictable and sustainable value for our investors.<\/p>\n\n\n\n<p>In a significant expansion of our strategic options, we enhanced our Mineral Resource base in Nevada, adding length to our growth trajectory and fortifying our long-term resource optionality. This expansion underscores our proactive approach in capitalising on geological potential to drive future growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-d137aaed72eb5e93b47974d9d393979b\">Unprecedented financial growth and strengthened credit ratings<\/h2>\n\n\n\n<p>We achieved a remarkable nine-fold increase in free cash flow<sup>APM<\/sup>, soaring from $109m in the prior year to $942m.<\/p>\n\n\n\n<p>By the end of the year, we had successfully reduced our adjusted net debt<sup>APM<\/sup> from $1,268m in December 2023 to $567m in December 2024, achieving an impressive adjusted net debt<sup>APM<\/sup> to adjusted EBITDA<sup>APM<\/sup> ratio of 0.21x, the strongest leverage ratio we&#8217;ve seen since 2011. This fortified financial position supports our robust liquidity of around $2.6bn, positioning us well for continued strategic investments.<\/p>\n\n\n\n<p>The outcome of our UK redomicile and US primary listing is building pathways to enhanced creditworthiness and financial robustness. Moody\u2019s affirmed our Baa3 rating with a Stable Outlook, while Fitch improved our outlook to Stable, maintaining a &#8216;BBB-&#8216; rating \u2013 a testament to our cost stewardship and financial strength.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-5f9c9bca204350cf866bb21114f51a37\">Fortifying our governance\nframework and cybersecurity\nstrategy<\/h2>\n\n\n\n<p>In response to identified control weaknesses\nfrom prior audits, we&#8217;ve made significant\nefforts to enhance our governance\nframework, reinforcing internal controls,\nupgrading systems and processes, and\nimproving staff awareness and capability\ndevelopment. Under my leadership this year\nand with the oversight of the Audit and Risk\nCommittee, we successfully remediated two\nof three material weaknesses identified in\n2023: the net deferred tax asset at Obuasi\nand the Information Technology General\nControls related to the SAP ERP system.\nConsiderable efforts have been dedicated to\naddressing the remaining weakness\nconcerning impairment controls for goodwill,\nintangible assets, and long-lived assets. A\ncomprehensive remediation plan has been\nestablished, and I will continue to oversee its\nexecution to ensure ongoing progress.<\/p>\n\n\n\n<p>Our cybersecurity strategy involves\ncontinuous risk assessments and\nimplementing strategic risk mitigation\nmeasures. By proactively identifying\npotential cyber threats, we ensure robust\ncontrols adaptive to emerging trends and\nattack vectors, safeguarding our digital\nassets and stakeholder trust.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-teal-color has-text-color has-link-color wp-elements-174d18282b1e83c0183e512ea1d5d187\">Looking ahead<\/h2>\n\n\n\n<p>As we move further into 2025, our finance transformation initiatives continue to support robust financial outcomes alongside our continued focus on standardisation and excellence in performance management.<\/p>\n\n\n\n<p>Integrating and transitioning Centamin&#8217;s systems and processes into our framework will be key in enhancing our financial control environment, with a focus on aligning systems, embedding SOX controls and streamlining financial processes.<\/p>\n\n\n\n<p>We are diligently progressing with the essential foundational work necessary for our transition to US reporting frameworks with each step being meticulously managed to ensure effective adoption of these standards.<\/p>\n\n\n\n<p>In closing, I extend my deepest appreciation to the Board, my fellow executive colleagues and to each and every member of my passionate finance team. Your collaborative spirit and dedication have been pivotal to our achievements and enduring capacity to deliver stakeholder value.<\/p>\n\n\n\n<p>We remain focused on leading with purpose and sustaining unparalleled value delivery.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-teal-color\">Gillian Doran<\/mark><\/strong><br><em>Chief Financial Officer<\/em><br>26 March 2025<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Setting the stage for sustained growth and unparalleled value creation I am pleased to reflect on a year where AngloGold Ashanti has not only navigated economic challenges but has also continued laying the foundations for accelerating growth, cost efficiencies and value creation on a sustainable basis. Navigating economic turbulence and capitalising on gold\u2019s strength The macro-economic landscape presented challenges, with fluctuating currencies and shifting inflation rates, yet we remained steadfast. Gold&#8217;s role as a safe-haven asset has again been reaffirmed, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-126","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>CFO\u2019s report - Reporting Suite 2024 | 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\/24\/ar\/view-from-the-top\/cfos-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CFO\u2019s report - Reporting Suite 2024 | AngloGold Ashanti\" \/>\n<meta property=\"og:description\" content=\"Setting the stage for sustained growth and unparalleled value creation I am pleased to reflect on a year where AngloGold Ashanti has not only navigated economic challenges but has also continued laying the foundations for accelerating growth, cost efficiencies and value creation on a sustainable basis. 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