CFO’s report and outlook

The balance sheet remains in a solid position, with approximately $2.6bn in liquidity

Christine Ramon
Chief Financial Officer

AngloGold Ashanti experienced a challenging 2021, including the effects of rising inflation, the ongoing COVID-19 pandemic and its impact on production and costs, lower realised grades across certain operations during the ongoing reinvestment phase and the temporary suspension of underground mining at the Obuasi gold mine following the sill pillar incident on 18 May 2021.

Revised production, capital and cost guidance (after adjusting cost for the impact of COVID-19) was achieved and the business generated free cash flow before growth capital expenditure of $426m. A final dividend of 14 US cents per share ($60m) was declared, taking the gross dividend for the year to 20 US cents per share. The balance sheet remains in a solid position, with approximately $2.6bn in liquidity, including cash and cash equivalents of approximately $1.15bn, at the end of 2021.

Salient financial results for the year include:

  • Basic earnings decreased to $622m from $946m in 2020, after once-off expenses of $87m
  • Total cash costs of $963/oz for 2021, an increase of 22% from $790/oz in 2020
  • All-in sustaining costs (AISC) of $1,355/oz compared to $1,037/oz in 2020, an increase of 31%, reflects the increase in total cash costs and the continued reinvestment in orebodies and Brazilian TSFs
  • Net cash inflow from operating activities decreased by 18% to $1,268m in 2021, from $1,545m in 2020
  • Free cash flow of $104m in a transitional year with significant reinvestment, COVID-19 impacts and Obuasi underground suspension
  • Adjusted net debt of $765m at the end of 2021; Adjusted net debt to Adjusted EBITDA ratio of 0.42 times
  • Cumulative cash dividends of $231m received from Kibali in 2021

Strategic priorities

The key financial indicators by which the Company measures shareholder value creation are production, AISC, normalised cash return on equity (nCROE), and absolute and relative total shareholder return (TSR) (see Rewarding delivery). Production and AISC targets are measured on an annual basis, while the nCROE and TSR targets are measured on a three-year trailing average basis. In meeting these targets, the Company focuses on three strategic priorities: production and cost performance to optimise margins; improve balance sheet strength and preserve liquidity; and free cash flow generation – while applying a disciplined capital allocation framework.

Production and cost performance to optimise margins

      2021
Production and cost metrics 2021 2020 Guidance Revised guidance
Production (000oz) 2,472 2,806 2,700 – 2,900 2,450 – 2,600
Costs All-in sustaining costs ($/oz)(1)1,355 1,037 1,130 – 1,230 1,240 – 1,340
Total cash costs ($/oz)(1)963 790 790 – 850 890 – 950

(1) AISC of $1,321/oz and total cash cost of $935/oz after adjusting for the estimated impacts of COVID-19

Our cost performance in 2021 reflects the reinvestment programme that commenced at the beginning of 2020 across our portfolio and continued during the year in review, including increased conversion of Mineral Resource to Ore Reserve, waste stripping at open pit mines and improved rates of underground development. Increased costs also reflected significant investment in TSF compliance in Brazil, following new legislation in Brazil (see CEO’s review and outlook).

Margins narrowed in 2021, a result of increased sustaining capital expenditure, lower production and the consequent impact on costs.

Our overall focus remains on improving our operational performance, underpinned by the introduction of the new Operating Model, continued cost discipline and the Full Asset Potential Review starting in 2022.

Margins Year ended
2021
Year ended
2020
Total cash costs 46% 56%
All-in sustaining costs 25% 42%

Despite these headwinds, margins remain healthy and reflect the Company’s ability to generate sustainable cash flow.

Cost performance reflecting significant re-investment phase

Total cash costs per ounce for the year was $963/oz compared with $790/oz for 2020. Total cash costs increased mainly due to lower grades ($121/oz) and stockpile drawdowns at certain operations ($23/oz). Inflationary pressures ($40/oz) were partially mitigated by weaker local currencies, lower royalties and higher silver by-product contribution.

Proactive supply chain strategies, including holding three to six months inventories of consumables and spares, delayed the inflationary impacts and enabled business continuity during the year. We are closely monitoring the sea freight market, given ongoing capacity constraints, which has impacted lead times on deliveries, as well as freight and logistics costs. We will continue to manage our supply chain proactively to ensure resilience and continuity of supply.

AISC of $1,355/oz compared with $1,037/oz in 2020, was higher due to increased sustaining capital expenditure and higher cash costs. AISC included an estimated $34/oz impact due to COVID-19 (including $17/oz related to estimated additional cost impacts and $17/oz related to estimated lost production) and an estimated $55/oz impact relating to the Brazilian TSF compliance programme (see risk 6 in Managing our risks and opportunities).

Basic earnings (profit attributable to equity shareholders) for the year ended 31 December 2021 were $622m, or 148 US cents per share, compared with $946m, or 225 US cents per share, for the year ended 31 December 2020.

Headline earnings for the year ended 31 December 2021 were $612m, or 146 US cents per share, compared with $1.0bn, or 238 US cents per share for the year ended 31 December 2020. Headline earnings were lower year-on-year mainly due to lower gold production, higher operating and exploration costs, as well as other expenses related to care and maintenance at Obuasi ($45m), restructuring and related costs ($18m), foreign exchange ($43m) and costs associated with the tender offer for, and subsequent redemption of, the 5.125% per annum notes due 2022 ($24m). These effects were partially offset by the marginally higher gold price received and lower net finance costs ($92m).

Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) for the year ended 31 December 2021 was $1.8bn compared with $2.47bn for the year ended 31 December 2020. Adjusted EBITDA was lower year-on-year mainly due to lower ounces of gold sold and higher operating costs, partially offset by the marginally higher gold price received.

Improve balance sheet strength and preserve liquidity

Our balance sheet strategy is underpinned by disciplined capital allocation and self-funded improvements in the balance sheet over the long term.

Although adjusted net debt increased 28% from $597m at 31 December 2020 to $765m at 31 December 2021, it is down 76% from its peak in 2014 – all without any equity raise – and finance costs are 58% lower over the same period.

The ratio of adjusted net debt to adjusted EBITDA was 0.42 times at 31 December 2021 compared to 0.24 times at 31 December 2020.

The Company remains committed to maintaining a flexible balance sheet with an Adjusted net debt to Adjusted EBITDA target ratio not exceeding 1.0 times through the cycle.

At 31 December 2021, the balance sheet remained robust, with strong liquidity comprising the $1.4bn multi-currency revolving credit facility (RCF) of which $1,367m was undrawn, the $150m Geita RCF of which $40m was undrawn, the $65m Siguiri RCF of which $30m was undrawn, the South African R150m ($10m) RMB corporate overnight facility which was undrawn, and cash and cash equivalents of approximately $1.15bn.

On 22 October 2021, a new $750m bond was issued by AngloGold Ashanti Holdings plc, which is fully and unconditionally guaranteed by the Company, with a 7-year tenor at a record low coupon of 3.375% per annum. The proceeds from the new bond were used to fund the repayment of the $750m, 5.125% per annum notes due in 2022 through a cash tender offer followed by the redemption of any remaining notes due. This translates into a $13m interest saving annually.

Liquidity remains strong, providing good flexibility. Our cash balance of $1.15bn excludes our $499m share of the Kibali cash balance. We funded the $365m Corvus acquisition post year-end from cash on hand.

Credit ratings remained unchanged, with investment grade from Moody’s (Baa3) and Fitch (BBB-), with negative and stable outlooks, respectively. The Standard & Poor’s rating remained one notch below investment grade (BB+), with a positive outlook.

Free cash flow generation

Net cash inflow from operating activities decreased to $1.268bn for the year ended 31 December 2021, compared to $1.545bn for the year ended 31 December 2020. This decrease was mainly due to lower gold sales and higher operating costs, partially offset by the marginally higher gold price received, lower cash taxes, higher dividends received and favourable movements in working capital.

Free cash flow of $104m for the year, compared to a free cash flow of $743m in 2020, with the reduction due to fewer gold ounces sold, higher capital expenditure and higher operating costs, partially offset by reduction in net finance costs, taxes and working capital inflows, as well as the marginally higher gold price received.

Free cash flow before growth capital – the metric on which dividends are calculated – was $426m for the year ended 31 December 2021, compared to $1.0bn for the year ended 31 December 2020.

During 2021, Kibali Goldmines S.A. (the company which owns the Kibali gold mine) paid a total dividend of $200m to its two shareholders, Kibali (Jersey) Limited, which is jointly owned by Barrick and AngloGold Ashanti, and holds a 90% stake in Kibali Goldmines S.A., and Société Minière de Kilo-Moto S.A. (SOKIMO), a DRC government parastatal entity that holds a 10% stake in Kibali Goldmines S.A. AngloGold Ashanti’s share of these dividends, net of withholding taxes, amounted to $81m.

In addition, AngloGold Ashanti received a cash distribution of $150m from Kibali (Jersey) Limited, which comprised loan repayments. At 31 December 2021, the Company’s attributable share of the outstanding cash balances awaiting repatriation from the Democratic Republic of the Congo (DRC) was $499m. The cash and cash equivalents held at Kibali Goldmines S.A. are subject to various administrative steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC. The cash is fully available for the operational requirements of Kibali Goldmines S.A. Barrick, the operator of the Kibali joint venture, continues to engage with the DRC government regarding the 2018 Mining Code and the cash repatriation.

Free cash flow was further impacted by continued lock-ups of value added tax (VAT) receivables at Geita in Tanzania and Kibali in the DRC, and export duties receivable at Cerro Vanguardia in Argentina:

  • In Tanzania, net overdue VAT receivables increased by $3m during 2021 to $142m at 31 December 2021 from $139m at 31 December 2020. During the year new claims of $50m were submitted and verified claims of $54m were offset against corporate tax payments. The Company will continue offsetting verified VAT claims against corporate taxes.
  • In the DRC, the attributable share of the net recoverable VAT balance is $73m as at 31 December 2021, a $8m increase from $65m as at 31 December 2020.
  • In Argentina, the Company recorded a $4m decrease in the export duty receivables during 2021 to a net amount of $19m at 31 December 2021 from $23m at 31 December 2020.

Cerro Vanguardia had a cash balance equivalent to $139m at 31 December 2021. During 2021, AngloGold Ashanti received an offshore dividend of $19m (net of withholding taxes) paid in US dollars. Out of the $139m cash balance, monies equivalent to $131m are available to be paid to AngloGold Ashanti’s offshore and onshore investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US dollars in order to distribute an offshore dividend of $114m to AngloGold Ashanti. While the approval is pending, the cash remains fully available for Cerro Vanguardia’s operational requirements.

Free cash flow results are used in the determination of the Company’s achievement of nCROE, a measure of how much cash is generated by the Company for each US dollar of equity in issue. Cash generated is adjusted for once-off, abnormal items to achieve a normalised cash flow. This is then compared against a US dollar cost of equity (USD COE), which is calculated using an external financial model and is not Company specific.

2015 – Adjusted for bond redemption premium on part settlement of $1.25bn high-yield bonds of $61m
2016 – Adjusted for bond redemption premium on settlement of remaining $1.25bn high-yield bonds of $30m
2017 – Adjusted for South African retrenchment costs paid of ~$49m
2018 – Adjusted for South African retrenchment costs paid of ~$61m

Capital allocation framework

Our capital allocation is disciplined and focused on improving value without placing undue financial or operating risk on the business. The Company will continue to rank and prioritise its investments, assessing them on their respective returns and affordability with respect to maintaining leverage ratios at or around targeted levels. The Company weighs these competing priorities and considers the full suite of financing opportunities available when determining whether to proceed with an investment. Free cash flow generated by the business is applied in a balanced manner to the four pillars of our capital allocation strategy, in order of allocation:

  • Sustaining capital expenditure to prioritise Ore Reserve growth
  • Maintaining a strong and solid balance sheet to provide optionality and flexibility through the cycle
  • Return of value to shareholders through the dividend policy
  • Self-funding any major growth capital projects

In 2021, we generated $1.4bn of cash from operations and received $231m of dividends from Kibali, our joint venture. After tax payments and financing costs, we invested $717m * (53% of our cash from operations) in sustaining capital, to fund Ore Reserve development and waste stripping.

We self-funded our growth capital incurred in 2021 of $311m *. This includes $122m at Obuasi and $58m at Geita, for the new open pit and underground developments.

*Excluding equity-accounted joint ventures

Capital expenditure

Two years into our inward reinvestment initiative, strong progress has been made with a cumulative addition of 8.7Moz of Ore Reserve, before depletion, at a cost of $68/oz. This was achieved primarily by exploration activities across the portfolio (see risk 2 included in Managing our risks and opportunities).

AngloGold Ashanti added 2.7Moz Ore Reserve before depletion in 2021. At Geita, 0.8Moz of Ore Reserve were added, for a total of 2.2Moz added over the last two years. Iduapriem added 0.9Moz, Kibali 0.5Moz and Sunrise Dam 0.4Moz. There were steady gains of 0.5Moz in Ore Reserve added across the rest of the portfolio. The Company has declared a maiden Mineral Resource of 3.4Moz at Silicon in Nevada, USA. Following the acquisition of Corvus completed on 18 January 2022, it is currently anticipated that the first production from the Nevada region will be realised in approximately three years.

Capital expenditure activities such as waste stripping at Tropicana, Iduapriem and Sunrise Dam’s Golden Delicious pit continued and remained on track. At Geita, the underground portal development at Geita Hill East progressed and mining operations started at the Nyamulilima open pit. In Brazil, investment continued to convert existing TSFs to dry-stack facilities at all mine sites, in a market characterised by increased competition for skills and engineering resources due to the COVID-19 pandemic and the industry requirements to meet regulatory deadlines relating to TSFs.

Total capital expenditure (including equity-accounted joint ventures) increased by 45% year-on-year to $1.1bn, compared to $757m in 2020. This increase was largely due to a 57% increase in sustaining capital expenditure to $778m, from $497m in 2020, which includes $137m for the Brazil TSF conversion. Total growth capital expenditure increased by 24% to $322m compared to $260m in 2020. (see risk 3 included in Managing our risks and opportunities).

As we continue to allocate capital to this important exploration and development programme, in addition to increased capital expenditure on TSFs in Brazil, sustaining capital is expected to remain at elevated levels of $300/oz between 2022 and 2024. In subsequent years, we expect this to return to normalised levels of about $200/oz.

(Refer to Maintain long-term optionality for an update on capital projects.)

      2021
Capital expenditure metrics 2021 2020 Guidance Revised guidance
Capital expenditure Total ($m) 1,100 757 990 – 1,140 1,030 – 1,190
Sustaining capex ($m) 778 497 720 – 820 700 – 800
Non-sustaining capex ($m) 322 260 270 – 320 330 – 390

Shareholder returns

Free cash flow before growth capital, our dividend metric, was $426m (2020: $1.0bn). Our dividend policy remains 20% of free cash flow, before growth capital, paid bi-annually. In line with this policy, our board approved a final dividend of 14 US cents a share ($60m), based on free cash flow generated in the second half of 2021, paid in March 2022. The declaration and payment of the final dividend resulted in a total dividend based on the financial performance of 2021 amounting to 20 US cents per share ($85m), following an interim dividend of 6 US cents per share ($25m) declared and paid in August 2021.

Despite the challenging year, the Company has demonstrated its ability to balance the competing capital needs of the business with delivery on key objectives against the backdrop of leadership change, and amidst the rapidly changing COVID-19 landscape.

The dividend pay-out allows us to maintain adequate balance sheet flexibility in a volatile and uncertain gold price environment, and to use our cash flows and available facilities to fund our ongoing capital and operational requirements, including selffunding sustaining and growth capital expenditure, should we wish to do so.

Delivery against 2021 financial objectives

1. Continue to grow Ore Reserve and Mineral Resource through our ongoing reinvestment strategy

  • $164m (2020: $124m) was spent on exploration and study costs
  • Ore Reserve increased 2.7Moz pre-depletion, for a total of 8.7Moz pre-depletion added over the last two years, at a cost of $68/oz
  • Maiden Mineral Resource at Silicon totalling 3.4Moz
  • Sustaining capital spend at increased levels amounted to $310/oz for 2021
  • Details of this can be found in our Ore Reserve and Mineral Resource Report <RR>


2. Maintain strong cost and capital discipline

  • Total capital expenditure + 45% year-on-year to $1.1bn in 2021 (including joint ventures), largely due to 57% increase in sustaining capital expenditure of $778m
  • Total growth capital expenditure increased by 24% to $322m
    • Obuasi Redevelopment Project $122m
    • Geita $58m
    • Colombia $51m
    • Tropicana $40m
    • Siguiri $20m
    • Sunrise Dam $15m
  • AISC of $1,355/oz for 2021, reflects higher sustaining capital expenditure, lower production and higher total cash costs
  • AISC negatively impacted by COVID-19 impacts estimated at $34/oz
  • Corporate costs increased by $5m for the year


3. Continue our efforts to optimise margins and generate strong free cash flows

  • $104m in free cash flow during a transitional year with significant portfolio reinvestment, COVID-19 impacts and voluntary temporary suspension of underground mining at Obuasi
  • Net cash inflow from operating activities decreased by 18% to $1,268m in 2021 from $1,545m in 2020


4. Improve our cash conversion efforts, with a specific focus on unlocking cash lock-up in the DRC

  • At 31 December 2021 the Company had $872m in cash (compared to $784m in 2020), VAT receivables and export duties owed in the DRC, Tanzania and Argentina
  • DRC
    • Cash dividend of $231m received from Kibali in 2021
    • Attributable share of outstanding cash balances awaiting repatriation from Kibali was $499m at the end of the year
    • VAT receivable $73m at 31 December 2021
  • Tanzania
    • Offset verified VAT claims of $54m against corporate tax payments – VAT receivable $142m at 31 December 2021
  • Argentina
    • Cerro Vanguardia paid $19m in offshore dividends to AngloGold Ashanti – an application has been made to the Argentinean Central Bank to approve the payment of the $114m offshore declared dividends
    • Export duties owed $19m at 31 December 2021


5. Continued efforts to manage the debt profile and maintain a healthy balance sheet

  • Adjusted net debt of $765m at the end of 2021; adjusted net debt to adjusted EBITDA ratio of 0.42 times
  • Improved balance sheet flexibility with new $750m, 7-year bond at 3.375% per annum
  • Strong liquidity comprising cash and cash equivalents of $1.15bn and total liquidity of $2.6bn


Objective met
Objective partly met or ongoing

Looking ahead to 2022

Guidance and indicative outlook 2022
Guidance
Production (000oz) 2,550 – 2,800
Costs All-in sustaining costs ($/oz) 1,295 – 1,425
Total cash costs ($/oz) 925 – 1,015
Capital expenditure Total ($m) 1,050 – 1,150
Sustaining capex ($m) 770 – 840
Non-sustaining capex ($m) 280 – 310
Overheads Corporate costs ($m) 75 – 85
Expensed exploration and study costs ($m) 210 – 240
Depreciation and amortisation ($m) 690 – 740
Interest and finance costs ($m) – income statement 115 – 125
Other operating expenses ($m) 45 – 55

Economic assumptions for 2022 are as follows:

Currency and commodity assumptions 2022
A$/$ exchange rate 0.76
$/BRL exchange rate 5.30
$/ARS exchange rate 133.00
$/R exchange rate 15.00
Oil ($/bbl) 80

Cost and capital forecast ranges are expressed in nominal terms. In addition, production, cost and capital expenditure estimates assume neither operational or labour interruptions (including any further delays in the ramp-up of the Obuasi Redevelopment Project), or power disruptions, nor further changes to asset portfolio and/or operating mines and have not been reviewed by our external auditors. Other unknown or unpredictable factors could also have material adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct. Measures taken at our operations together with our business continuity plans aim to enable our operations to deliver in line with our production targets. We, however, remain mindful that the COVID-19 pandemic, its impacts on communities and economies, and the actions authorities may take in response to it, are largely unpredictable and therefore no incremental additional impact is included in the cost and capital forecast ranges. Actual results could differ from guidance and any deviation may be significant. Please refer to the Risk Factors section in AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2021 filed with the United States Securities and Exchange Commission (SEC).

In line with past trends, production for 2022 is expected to be about 55% weighted to the second half. Unit costs are expected to decline into the second half of the year, as production increases. Based on the planned production profile, we expect that unit cash costs and AISC will exceed the top level of annual cost guidance during the first half of the year, before trending below those ranges in the second half.

This takes into consideration Obuasi’s ramp up to 4,000 tonnes per day in the second half, when it will add about 140,000 ounces to this year’s production over 2020 levels. Production is guided between 2.55 to 2.8 million ounces. We’ll be looking for marginal improvements in production at Tropicana, Sunrise Dam, Iduapriem and Siguiri, and consistent performances at the remaining assets.

Total cash costs are expected to be $925/oz to $1,015/oz. This outlook includes inflationary pressures on the back of oil, consumables, and logistics as well as scarce skills. Inflationary pressure for the year is estimated at around 7% to 8% for the group. We have benefitted from delayed inflation impacts in 2021 due to our strategic partnerships on certain global spend categories, as well as the stocking approach we have followed at our operations.

Still, we anticipate sustained inflationary pressure through at least the first half of the year, which we will look to manage through our long-range consumable contracts, leveraging our global spend and ongoing collaboration with our strategic suppliers. The Operating Model changes and operational improvement initiatives are expected to further mitigate inflationary pressures.

All-in sustaining costs are expected to be between $1,295/oz and $1,425/oz, consistent with the last year’s levels, where elevated sustaining capital underpinned our reinvestment strategy. We continue our multi-year reinvestment strategy in: exploration ($32/oz), Ore Reserve and underground infrastructure development ($103/oz), waste stripping ($39/oz), Brazil TSF compliance ($26/oz or $70m), and an incremental $45m of Ore Reserve and infrastructure development to support Obuasi’s ramp up. Total capital expenditure is weighted to the first half of 2022 and is guided at $1.05bn to $1.15bn and includes sustaining capital expenditure of $770m to $840m. On a per ounce sold basis, this amounts to $275/oz to $300/oz, in line with 2021.

These costs will remain elevated in the near term, but are planned to reduce to more normalised levels of around $200/oz from 2024 onwards.

Non-sustaining or growth capital is guided at $280m to $310m and includes remaining funding for Obuasi Phase 3 (approximately $100m), Havana stripping at Tropicana (approximately $80m), $39m for Geita Hill Underground, study costs for the two Colombian projects (Quebradona $12m, Gramalote $9m), and a new TSF at Iduapriem (approximately $60m). The profiling of growth capital is heavily weighted to the first half (65%) largely due to Tropicana.

Expensed exploration and study costs are guided in line with previous levels, with an additional $42m to move our Nevada projects forward.

We remain mindful that further waves of COVID-19, its impacts on communities and economies, and the actions that authorities may take in response, are largely unpredictable, and therefore no incremental additional impact is included in the cost and capital forecast ranges relating to the COVID-19 pandemic.

Sensitivities on key economic metrics based on budgeted economic assumptions for 2022 are as follows:

Sensitivity* AISC
($/oz)
Cash from operating activities before taxes for 2022 ($m)
10% change in the oil price617
10% change in local currency56124
10% change in the gold price7433
50koz change in production2480

* All the sensitivities based on $1,650/oz gold price and assumptions used for guidance

Governance

Materiality

The related material financial matters identified in our materiality assessment process were: Managing our TSFs (with an impact on capital expenditure) and achieving business sustainability and growth. See Focusing on our material issues in the <SR>.

Oversight

Governance of our financial performance and reporting is overseen and monitored by the Audit and Risk Committee, on behalf of the board. See Corporate governance for further detail on this.

External audit rotation

On 19 November 2021, the Company advised shareholders that following the conclusion of a comprehensive tender process, the Audit and Risk Committee has recommended the proposed appointment of PricewaterhouseCoopers Inc. (PwC) as the external auditor of AngloGold Ashanti with effect from the financial year 2023. The change in external auditor was initiated by AngloGold Ashanti’s decision to early adopt mandatory audit firm rotation. This appointment will be submitted to shareholders for approval at the annual general meeting of the Company scheduled for May 2022. Ernst & Young Inc. (EY) will continue as external auditor of AngloGold Ashanti in respect of the financial years 2021 and 2022.

Financial risk management

Details of our financial risk management exposures can be found in group note 33 of the <AFS>.

Priorities for 2022

Our financial priorities for 2022 are:

  • Achieve guidance on all metrics – continue to focus on cost discipline, maintaining margins, and ensuring sustainable cash flow generation
  • Achieve Obuasi ramp up target; move to steady state operations; progress Phase 3
  • Continue reinvestments across the portfolio – continue to grow Ore Reserve, net of depletion
  • Embed Operating Model redesign
  • Initiation of the Full Asset Potential Review to complete detailed analysis of each asset, including mine design and key operating parameters, to understand the reasons for the gap between current and best possible performance

Achieving these milestones will position the Company favourably to achieve its longer-term goals, thereby underpinning an industry competitive return to shareholders.

Acknowledgement

I wish to record my gratitude to the broader finance team across the group which includes the financial reporting, tax, treasury, information management, global supply chain and internal audit functions. Our strong balance sheet, robust financial systems and strong internal control environment enable proactive risk management and well informed business decisions. This bears testimony to the calibre of our financial team. During the first eight months of the past financial year, I filled the interim CEO role while the Company searched for a full-time CEO. The finance function continued to run smoothly during this period under Ian Kramer, the interim CFO, to whom I am very grateful.

In February 2022, I took the difficult decision to take early retirement from my role as CFO of the Company at the end of June 2022, in order to spend more time with my family in the near term. For the remainder of my tenure, I will continue to focus on delivering on the Company’s strategic priorities and supporting Alberto, our CEO, with the implementation of the new Operating Model and the Full Asset Potential Review initiative. I wish my successor, yet to be appointed, all of the best in this role.

Christine Ramon
Chief Financial Officer
29 March 2022