The production of global miner AngloGold Ashanti increased by one fifth in its latest quarter as higher grades and efficiency gains helped offset the impacts of rising inflation.
Production increased by one fifth year on year to 738,000oz for the three months to end-September, underpinned by higher grades across most assets, the global miner said on Thursday in a quarterly update.
The company, valued at R97.9bn on the JSE, kept its annual guidance unchanged at 2.55-million ounces to 2.80-million ounces, with the largest growth expected from Obuasi mining complex in Ghana.
Obuasi upped its production fivefold (453.8%) year on year with the third phase of its development expected to continue as planned to the end of 2023.
The bulk of production in the latest quarter came from Africa, with more than three fifths, followed by Latin America, with just more than one fifth, and the rest from Australia. AngloGold sold its last SA mine to Harmony in 2020.
“We continue to prioritise execution, efficiency and careful allocation of capital,” CEO Alberto Calderon said. “We are focused on regaining competitiveness versus our peers, and we still have some way to go before we will be satisfied.”
All-in sustaining costs dropped by 5.7% year on year to $1,284/oz.
Total cash costs, all cash costs incurred at the mine site, increased 4.2% year on year to $966/oz as the cost of fuel, consumables and labour rose.
The war in Ukraine has led to the supply chain being disrupted, resulting in the supplies of some key commodities experiencing volatility and inflationary pressures. This includes oil and lubricants, ammonia-related products such as explosives and cyanide and labour, the company said.
“We expect inflationary pressures to continue to impact operating costs for the remainder of the year, and into 2023,” the company said.
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