{"id":75489,"date":"2023-10-22T07:53:49","date_gmt":"2023-10-22T11:53:49","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/anglogold-ashanti-good-growth-prospect-nyseau\/"},"modified":"2023-10-22T07:53:59","modified_gmt":"2023-10-22T11:53:59","slug":"anglogold-ashanti-good-growth-prospect-nyseau","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=75489","title":{"rendered":"AngloGold Ashanti: Good Growth Prospect (NYSE:AU)"},"content":{"rendered":"
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Part I: Introduction<\/h2>\n

Johannesburg-based AngloGold Ashanti Limited (NYSE:AU<\/span>) released its H1 2023 results ending June 30, 2023, on August 4, 2023.<\/p>\n

Note: This article updates my previous article on AngloGold Ashanti, published on October 17, 2022. I have been following AU’s regularly since December 2020.<\/span><\/p>\n

AngloGold Ashanti owns a diversified asset portfolio, with Tier 1 assets representing 61.8%<\/strong> of the total yearly input.<\/p>\n

\"Map\"<\/span>
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AU Map Assets from September Presentation (AU Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n

Reminder:<\/strong> AngloGold Ashanti relocated its major listing from the Johannesburg Stock Exchange (JSE) to New York on May 12, 2023, in order to get access to a wider capital market and lower the risk associated with South Africa.<\/p>\n

1: H1 2023 Results and Commentary<\/h3>\n

Revenue for H1 2023 was $2,186 million<\/strong> with an adjusted EBITA of $678 million. <\/strong>Net income was $40 million, or $0.10 <\/strong>per diluted share.<\/p>\n

The company reaffirmed its <\/span>2023 guidance<\/strong> as it reported improved second-quarter performance compared to the first three months of the year, with a <\/span>12%<\/strong> increase in production.<\/span><\/p>\n

\"Table\"<\/span>
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AU H1 2023 Overview (AU Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n

Production per region in H1 2023:<\/strong><\/h3>\n

1.1: Africa<\/strong><\/h4>\n

Operations produced 713K Au Oz<\/strong> at a total cash cost of $1,105\/oz<\/strong> for the six months ended June 30, 2023.<\/p>\n

The production of gold at Iduapriem Mine<\/strong> in Ghana was 118K oz<\/strong> for the six months that ended on June 30, 2023, at a total cash cost of $1,004\/oz<\/strong>, as opposed to 115K oz at a total cash cost of $1,028\/oz for the same period in 2022. Since the mine has access to better-grade ore from Teberebie Cut 2, gold production has increased year over year.<\/p>\n

Also, the Obuasi redevelopment project’s Obuasi Phase 3 achieved 82%<\/strong> overall completion in the first half of 2023.<\/p>\n

1.2: Latin America<\/strong><\/h4>\n

The Americas operations produced 258K Au Oz<\/strong> at a total cash cost of $1,313\/oz<\/strong> for the period ending on June 30, 2023.<\/p>\n

1.3: Australia<\/strong><\/h4>\n

The Australia operations produced 265K Au Oz<\/strong> at a total cash cost of $1,296\/oz<\/strong> for the period ending on June 30, 2023.<\/p>\n

At Sunrise Dam<\/strong>, gold output for the six months that ended on June 30, 2023, was 127K oz at a total cash cost of $1,304\/oz, up from 117K oz at a total cash cost of $1,377\/oz for the same time in 2022.<\/p>\n

The improvement in mill feed grades and metallurgical recoveries, which led to a 9% increase in recovered grade, were the key factors in the increase in gold production year over year.<\/p>\n

1.4: Nevada Projects: The Beatty District<\/h4>\n
\"Map\"<\/span>
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AU Beatty District (AU Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n

The project includes the North Bullfrog<\/strong>, the Expanded Silicon,<\/strong> Mother Lode,<\/strong> Sterling, and Crown. The first production is planned for the end of 2025, with an annual input of 300,000 oz.<\/strong><\/p>\n

2: Stock performance<\/strong><\/h3>\n

I regularly cover three gold miners mining in South Africa: AngloGold Ashanti, Harmony Gold (HMY), and Gold Fields Ltd. (GFI).<\/p>\n

AngloGold Ashanti has underperformed its peers. Still, the stock is now up 55%<\/strong> on a one-year basis.<\/p>\n

\"Chart\"
Data by YCharts<\/figcaption><\/figure>\n

Part II: Global Presentation and Gold Production<\/h2>\n

1: H1 2023 Gold production<\/strong><\/h3>\n

1.1: H1 2023 Production<\/strong><\/h4>\n

AngloGold Ashanti sold 1,246K Au Oz<\/strong> in H1 2023 and produced 1,236K Au Oz.<\/strong> Production was up 0.2%<\/strong> from H1 2022.<\/p>\n

\"Chart\"<\/span>
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AU 6-month Gold Production History (Fun Trading)<\/span><\/p>\n<\/figcaption><\/figure>\n

After a difficult first quarter in 2023, production rose in the second quarter at Kibali (38%), Geita (21%), AGA Minera\u00e7o (63%), Serra Grande (47%), Sunrise Dam (8%), and Tropicana (16%) compared to the first quarter.<\/p>\n

The carbon-in-leach tank failure at the Siguiri mine<\/strong> has since been repaired. During the second quarter, total cash costs per ounce were 2%<\/strong> lower than in the first quarter of 2023.<\/p>\n

\"Table\"<\/span>
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AU H1 2023 Production Performance (AU Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n

1.2: Quarterly Production per Mine, Comparison H1 2022 with H1 2023<\/strong><\/h4>\n

The company produced gold from ten different mines<\/strong>:<\/p>\n

\"Chart\"<\/span>
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AU 6-month Gold Production per Mine. H1 2022 versus H1 2023 (Fun Trading)<\/span><\/p>\n<\/figcaption><\/figure>\n

Strong contributions from most of the portfolio helped support the significant increase in gold production from quarter to quarter.<\/p>\n

These contributions included production increases of 38% at Kibali, 21% at Geita, 63% at AGA Minera\u00e7o, 47% at Serra Grande, 8% at Sunrise Dam, and 16% at Tropicana. The lower production at Siguiri as a result of the CIL tank failure (which has since been rebuilt) somewhat offset this gain in output.<\/p>\n

2: All-in Sustaining Costs and Gold price realized<\/h3>\n

All-in-sustaining cost (AISC) was $1,587 per ounce<\/strong> in H1 2023. An increase of 11.9%<\/strong> from H1 2022<\/p>\n

\"Chart\"<\/span>
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AU 6-month Gold Price and AISC History (Fun Trading)<\/span><\/p>\n<\/figcaption><\/figure>\n

Part III: AngloGold Ashanti: Balance Sheet and Production H1 2021 to H1 2023: The Raw Numbers<\/h2>\n

Note:<\/strong> Like most South African gold and PGM miners, full results are posted only every six months, complicating the analysis.<\/p>\n

<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
AU 6-month<\/strong><\/td>\n6\/2021<\/strong><\/td>\n12\/2021<\/strong><\/td>\n6\/2022<\/strong><\/td>\n12\/2022<\/strong><\/td>\n6\/2023<\/strong><\/td>\n<\/tr>\n
Total Revenues in Millions (6 months)<\/td>\n1,965<\/td>\n2,064<\/td>\n2,155<\/td>\n2,346<\/td>\n2,186<\/td>\n<\/tr>\n
Net Income in $ million (6 months)<\/td>\n362<\/td>\n260<\/td>\n298<\/td>\n-1<\/td>\n40<\/td>\n<\/tr>\n
EBITDA: $1 Million (6 months)<\/td>\n775<\/td>\n724<\/td>\n702<\/td>\n569<\/td>\n452<\/td>\n<\/tr>\n
EPS diluted in $\/share (6 months)<\/td>\n0.86<\/td>\n0.62<\/td>\n0.71<\/td>\n0.00<\/td>\n0.10<\/td>\n<\/tr>\n
Cash from operating activities in $ million (6 months)<\/td>\n467<\/td>\n801<\/td>\n992<\/td>\n812<\/td>\n293<\/td>\n<\/tr>\n
Capital Expenditure in Millions (6 months)<\/td>\n429<\/td>\n598<\/td>\n434<\/td>\n594<\/td>\n453<\/td>\n<\/tr>\n
Free Cash Flow in $ million (6 months)<\/td>\n38<\/td>\n202<\/td>\n558<\/td>\n218<\/td>\n-160<\/td>\n<\/tr>\n
Total Cash in Millions (6 months)<\/td>\n1,081<\/td>\n1,154<\/td>\n1,266<\/td>\n1,108<\/td>\n722<\/td>\n<\/tr>\n
LT Debt (incl. current) in dollars (6 months)<\/td>\n1,929<\/td>\n1,909<\/td>\n2,005<\/td>\n1,985<\/td>\n1,918<\/td>\n<\/tr>\n
Shares outstanding (diluted) in Million (6 months)<\/td>\n419.05<\/td>\n420.06<\/td>\n420.06<\/td>\n418.31<\/td>\n421.08<\/td>\n<\/tr>\n
Dividend yearly<\/td>\n0.15<\/td>\n–<\/td>\n0.29<\/td>\n <\/td>\n0.18<\/td>\n<\/tr>\n
Gold Production<\/strong><\/td>\n6\/2021<\/strong><\/td>\n12\/2021<\/strong><\/td>\n6\/2022<\/strong><\/td>\n12\/2022<\/strong><\/td>\n6\/2023<\/strong><\/td>\n<\/tr>\n
Total Gold production in K Oz<\/td>\n1,200<\/td>\n1,272<\/td>\n1,233<\/td>\n1,509<\/td>\n1,236<\/td>\n<\/tr>\n
Gold production sold in K Oz<\/td>\n1,214<\/td>\n1,269<\/td>\n1,233<\/td>\n1,484<\/td>\n1,246<\/td>\n<\/tr>\n
Gold Price Realized: $\/Oz<\/td>\n1,801<\/td>\n1,792<\/td>\n1,874<\/td>\n1,726<\/td>\n1,920<\/td>\n<\/tr>\n
AISC in $\/oz<\/td>\n1,333<\/td>\n1,376<\/td>\n1,418<\/td>\n1,54<\/td>\n1,587<\/td>\n<\/tr>\n<\/table>\n

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