AngloGold Ashanti plc — 2023 Form 20-F
Reporting period: Financial year ended 31 December 2023. This is an annual report, not a standalone fourth-quarter filing; the supplied text does not provide a clear Q4-only set of financial results. Financial statements are prepared under IFRS as issued by the IASB and presented in U.S. dollars.
Business context and reporting period
AngloGold Ashanti is a global gold producer operating mines in seven countries, with projects in the United States and Colombia. Gold is its principal product, with silver and sulphuric acid as by-products. In September 2023, the Group reorganised under a new UK parent, AngloGold Ashanti plc, and moved its global headquarters to Denver. The Group reports operating segments by Africa, Australia, the Americas and, for major development projects, Projects.
Financial and operating performance
| Metric | 2023 | 2022, restated |
|---|---|---|
| Revenue from product sales | $4.582bn | $4.501bn |
| Profit (loss) for the year | ($222m) | $251m |
| Loss attributable to equity shareholders | ($235m) | Profit of $233m |
| Net cash from operating activities | $971m | $1.804bn |
| Cash and cash equivalents, net of overdraft | $955m | $1.106bn |
| Total borrowings, excluding leases | $2.239bn | $1.983bn |
| Capital expenditure, including equity-accounted JVs | $1.127bn | $1.118bn |
Gold income was $4.480bn, up 2%; the average gold price received rose to $1,928/oz from $1,793/oz. Attributable production was 2.593 million ounces excluding Córrego do Sítio (CdS); reported CdS production was 42,000 ounces. All-in sustaining costs (AISC), a non-IFRS measure, were $1,652/oz for subsidiaries and $951/oz for equity-accounted joint ventures. Excluding CdS, subsidiary AISC was $1,628/oz.
Profit before tax was $63m, while the tax expense was $285m. Cost of sales rose 5% to $3.541bn; total operating costs rose 4% to $2.870bn. The Company reported a $221m net impairment/derecognition loss and $314m of corporate restructuring costs. Operating cash flow fell 46% to $971m, reflecting lower JV dividends and higher supplier and employee payments. Free cash flow is not stated as a clear amount in the supplied text.
At year-end, $1.261bn of committed credit facilities remained undrawn. Borrowings included $207m current and $2.032bn non-current; $982m was scheduled to fall due after five years. Lease liabilities were a further $171m. Management stated that working capital was sufficient for present requirements. Provisions for decommissioning and environmental restoration, excluding JVs, were $625m.
Changes versus the prior comparable period
Revenue increased 2%, but lower gold volumes partly offset the higher realised price: subsidiary gold sold declined 5% to 2.273 million ounces. Production declined at Siguiri, Obuasi, Geita and several Americas operations; Australia production increased 4%. Subsidiary AISC rose from $1,439/oz to $1,652/oz, or from $1,396/oz to $1,628/oz excluding CdS, due to higher costs and sustaining capital and lower ounces sold.
The year’s net loss contrasts with 2022 profit, driven in part by restructuring costs, impairments and other expenses, as well as the higher tax expense. Borrowings increased, while operating cash flow and cash balances decreased. CdS was placed on care and maintenance in August 2023.
The 2022 financial statements were restated: the Obuasi deferred-tax error reduced 2022 profit by $49m; other corrected errors reduced 2022 profit by a further $16m and 2021 profit by $8m. The filing says the restatements did not affect debt, financial maintenance covenants or cash flows. The original 2022 and first-half 2023 financial statements should no longer be relied upon.
Outlook, risks and unusual items
- Outlook: The filing describes a Full Asset Potential programme intended to improve operating and cost performance in 2024, but the supplied text does not provide clear consolidated production or cost guidance. Management reports that the programme had begun delivering productivity and cost benefits. The Board declared a 19-cent-per-share interim cash dividend on 23 February 2024.
- Operations and projects: Poor ground conditions affected Obuasi production and costs; a more selective mining method is being trialled. Siguiri’s 2023 CIL tank failure disrupted production, with the plant returning to full capacity in November. The Queiroz plant and related concentrate processing were suspended pending tailings-related work and resolution of a legal proceeding. The Quebradona environmental licence application was archived; a new environmental impact assessment is expected to be submitted in 2027. A proposed Tarkwa–Iduapriem joint venture remains subject to agreement and approvals.
- Controls and reporting: Management concluded that disclosure controls and ICFR were ineffective at 31 December 2023 and identified three material weaknesses: the Obuasi deferred-tax calculation, impairment assessment controls, and SAP ERP access controls/documentation. Remediation plans are underway; the weaknesses had not been remediated as of the filing date. The auditor gave an unqualified opinion on the 2023 financial statements but an adverse opinion on ICFR effectiveness.
- Tax, legal and liquidity exposures: Tanzania tax matters in dispute totalled $369m at year-end; the Group also reported $204m of net overdue Tanzanian recoverable tax balances and $51m attributable cash awaiting repatriation from the DRC. A $93m DRC customs claim was disclosed, with a further $152m VAT assessment received by the Kibali JV in February 2024. These amounts are disputed; outcomes and recovery timing are uncertain. In March 2024, lenders waived technical defaults under the revolving credit facilities linked to the accounting errors; the Company said covenant compliance was unaffected.
- Environmental and other risks: Brazil tailings regulations require substantial decharacterisation work; the Serra Grande dam is required to be decharacterised by September 2025. Obuasi legacy arsenic trioxide waste treatment is expected to cost $50–$60m over 2024–2029. Other material exposures include gold-price, foreign-exchange, energy and inflation volatility, political and permitting risk, community disruption, water availability, and mine safety.
Non-GAAP measures such as AISC, total cash costs and free cash flow are defined by the Company and may not be comparable with similarly named measures used by other issuers.
Key facts for investors to verify
- Review the restated 2022 and 2021 figures and the planned remediation and testing of all three ICFR material weaknesses.
- Track 2024 operating performance and costs at Obuasi, Siguiri, Geita and the Brazilian operations, including the status of the Queiroz plant and CdS.
- Confirm the timing and cash recovery of disputed tax refunds, DRC tax/customs matters and restricted or unrepatriated cash.
- Assess liquidity, borrowing maturities, facility utilisation and covenant compliance after the lender waivers.
- Monitor Brazilian tailings work, related legal proceedings and environmental spending, alongside the Quebradona permitting timetable and proposed Ghana joint venture.