Precious metals miner AngloGold Ashanti says production was flat in its first quarter to end-March, but it is still eyeing a double-digit increase for its full year after leadership shake-ups aimed at getting more out of its assets and a ramp-up of production at Obuasi, Ghana.
The group, which exited SA in 2020, said first quarter production was flat year on year at 588,000 ounces, but it is pleased with total cash costs increasing only 4% year on year, which is below inflation.
AngloGold Ashanti, which appointed a new CEO in September, has been embedding a new operating model after completing the implementation of an organisation-wide restructuring.
The company has introduced new leadership and removed duplicate roles and needless expenditure to reduce costs and improve operating results. It is also pushing a programme of increased investment to improve mining flexibility and extend the lives of its key assets.
“There's still a long way to go, but we're starting to see an improving operational performance across the portfolio, underpinned by a more focused operating culture and a better grade profile,” CEO Alberto Calderon said in the statement on Monday.
The group said on Monday it saw an 8% improvement in its underground grades, which refers to ore density. It still expects to produce between 2.55-million and 2.8-million ounces in 2022. This would represent an increase from 2021 of 2.84%-13.27%. The group expects production to be weighted to its second half, with much of the increased contribution coming from Obuasi.
The miner voluntarily suspended operations at Obuasi in May 2021 after a rockfall, and underground production resumed in January.
Adjusted core profit fell 2% to $438m (R7bn) in the three months to end-March year on year, with the group saying on Monday it expects inflationary pressures to persist for the remainder of the year.
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