AngloGold Ashanti Plc Q4 FY2023 earnings call

• Safety: Industry frequency rates well below peers, with a clear safety strategy pairing risk awareness and robust controls.
• Full-asset potential: Program gained traction across assets, driving $250 million incremental EBITDA. Examples include Sunrise underground ore tons above 220,000 tons/month, Tropicana underground ore tons up 25% in H2, and Iduapriem's improved drill and blast processes.
• Brazil operations: Restructured leadership team, placed CDS on care and maintenance, prioritizing full-asset potential to enhance production stability and efficiency.
• Obuasi: Recovering from ground conditions, forecasting gold production range of 275-320k ounces in 2024, 325-375k in 2025, and over 400k in 2026. V30 reamer and Underhand Drift and Fill trial showing cost improvements.
• Nevada: New 9.1 Moz inferred mineral resource at Merlin, North Bullfrog in permitting process with first mineral reserve of 1 million ounces, expanded silicon project with strong exploration results.

Gold production was up 15% in H2 2023. Key mines like Iduapriem, Tropicana, Geita, and Kibali contributed to strong performance. Cash costs were 9% better half-on-half at $1,060 an ounce. Full year cash costs were $1,108 an ounce. All-in sustaining costs increased to $1,038 an ounce. Free cash flow in H2 was $314 million. Tier 1 assets (e.g., Geita, Iduapriem, Kibali, Tropicana) produced 1.6 million ounces of gold at a cash cost of $990 an ounce. Tier 2 assets like Cuiabá delivered ahead of budget, driving a 9% improvement in cash costs.

• 2024: Gold production expected 2.59-2.79 million ounces (4% growth from 2023), total cash costs $1,075-1,175 an ounce, all-in sustaining costs stabilized, sustaining CapEx slightly higher due to mineral reserve development.
• 2025: Gold production expected to grow 2% year-on-year, total cash costs to decrease due to full-asset potential and production efficiencies, non-sustaining capital expenditure increase related to North Bullfrog construction (pre-feasibility study ongoing).

• Potential error in deferred tax asset calculation at Obuasi, impacting earnings by up to $146 million between 2022 and H1 2023.
• Inflationary pressures affecting cash costs, with labor increases impacting 40% of cash costs.
• Production disruptions at Cuiabá and Siguiri, currency weakness in Aussie dollar, Argentinean peso, and Ghana Cedi.

Q: On full-asset potential implementation, progress, and cost impact; Nevada permitting timeline and expanded silicon economics.

A: Full-asset potential tracked by hard metrics, cost impact due to Obuasi and Brazil tailings, Nevada production expected in 2026, expanded silicon pre-feasibility study ongoing.

Q: On capital and Nevada project capital.

A: 2025 capital includes Nevada pre-feasibility study and growth projects, North Bullfrog construction pre-feasibility.

Q: On Obuasi costs, asset optimization, and mining inflation.

A: Underhand cut and fill trial shows $50 per ounce cost improvement, asset potential across group, mining inflation at 5%.

Q: On cost outlook, Nevada JVs, reserve replenishment.

A: Working towards three-year cost outlook, no active JV discussions in Nevada, confident in reserve replenishment through pre-feasibility studies.