AngloGold Ashanti on Friday reported an increase in gold production for the first quarter to end-March, with full-year production also expected to rise.
The global gold miner realised a 2% year-on-year gold production increase in the first quarter to 581,000oz, driven mainly by higher recovered grades, which was, however, partly offset by lower tonnes processed.
The increase is despite the previously reported effect of rain and flooding, which contributed to a drop of about 15,000oz relative to the previous quarter.
The miner said the increase was offset by lower gold production at its Siguiri mine in Guinea — falling 35%, where carbonaceous ore in the Bidini pit resulted in poor recoveries, as well as at the Tropicana mine in Western Australia — down 17%, where severe flooding caused by a tropical cyclone, inundated underground and open pit mining areas as well as access roads to the remote site. Both mines have since recovered to normalised production levels.
The company’s Sunrise Dam also suffered from the heavy rainfall in Western Australia, albeit to a lesser extent than Tropican, while gold production at the Cerro Vanguardia was lower due to a planned plant stoppage.
This is a good start to the year, with another strong safety result and a good overall performance from the portfolio.
— AngloGold Ashanti CEO Alberto Calderon
Gold production at Obuasi mine in Ghana was 54,000oz for the reporting quarter, in line with the mine plan, as mining occurred in lower-grade areas. This is compared to 60,000oz for the same period last year.
Obuasi is forecast to produce 275,000oz-320,000oz of gold in 2024, and 325,000oz-375,000oz in 2025, as it “continues its ramp-up to steady state production”.
The miner reported no fatalities at any of its mines for the reporting quarter, making it the eleventh consecutive quarter with no deaths.
A lower total recordable injury frequency rate (TRIFR) of 1.08 injuries per million hours worked during the reporting period was recorded, compared to the most recent average of 2.66 for members of the International Council on Metals & Minerals (ICMM).
“This is a good start to the year, with another strong safety result and a good overall performance from the portfolio,” said CEO Alberto Calderon said in the statement.
“We are seeing greater consistency from most of our operations; in Brazil, both sites have shown significantly better performance, with greater production control and stability. Geita and Kibali were strong again, and Obuasi’s ramp-up remains on track.”
The company’s gold production guidance for 2024 remains unchanged, with fourth-quarter production expected to be the strongest quarter for the year.
AngloGold’s share price on the JSE was up 2.37% to R455.22.
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