AngloGold Ashanti doubles dividend while profits halve

AngloGold Ashanti’s earnings and profits halved in 2022 as costs eroded gains from higher production, but the miner still declared a full-year dividend double that of 2021 as free cash flow surged.

The company – which no longer operates in South Africa but has retained its primary listing on the JSE – reported a plunge in basic earnings from $622 million (R11.35 billion) in 2021 to $297 million (R5.42 billion) in 2022, largely due to higher operating and exploration costs and some $300 million in impairments related to three Brazilian operations.

Net profit halved from $646 million in 2021 to $316 million for the year ended in December 2022.

AngloGold Ashanti declared a final dividend of R3.22 per share, bringing its full-year dividend to R8.15 per share – the equivalent of $0.47, up from $0.20 in 2021.

The right track

Despite a marginally lower gold price during the year under review, the company recorded free cash flow of $657 million, up from $104 million in 2021.

Its balance sheet remained in a solid position after funding capital expenditure, two property acquisitions in Nevada and paying an interim dividend.

Gold production of 2.74 million ounces marked an 11% improvement over 2021.

The operational result was underpinned by solid performances across most of the portfolio, with the Obuasi gold mine in Ghana meeting targeted production as it continues to ramp-up towards full planned production in excess of 400 000 ounces by the end of 2024.

The company said it delivered on its strategic objectives in 2022, achieving improvements in production, cash flow and safety performance while holding cost increases at around half the inflation rate.

Despite the highest inflation rates in over 40 years, the miner’s total cash costs per ounce increased 6% to $1 024 per ounce in 2022 compared to $963 in 2021. The increase in all-in-sustaining costs was limited to 2% year-on-year.

As the group works to secure growth, its reported mineral reserve additions in 2022 again exceeded depletion.

“It’s been a year of significant progress, with the right operating model and the right people in the right place. We delivered on our production and cost commitments to the market and have begun to regain cost competitiveness versus our peers,” said CEO Alberto Calderon. “We’re seeing good progress in a number of places which confirm we’re on the right track.”

AngloGold Ashanti introduced new members to its senior leadership team last year and redesigned its operating model to narrow the cost gap with peers.

The company has also started an asset optimisation programme while self-funding its successful exploration programmes as well as developing mining projects in Ghana and Nevada. — www.news24.com