AngloGold Ashanti plc — Form 6-K Summary
Filing date: 19 March 2024. The filing presents preliminary unaudited condensed consolidated financial statements for the six months and year ended 31 December 2023, together with a restatement announcement, corporate update and 2024 annual general meeting information.
Business Context and Reporting Period
- AngloGold Ashanti is a global gold mining company reporting in U.S. dollars under IFRS.
- The 2024 annual general meeting is scheduled for 28 May 2024 in Denver, Colorado; the record date is 2 April 2024.
- The financial statements remain preliminary, unaudited and subject to completion of the restatement and audit procedures.
Key Financial Metrics
| Metric | Year ended 31 Dec. 2023 | Year ended 31 Dec. 2022, restated |
|---|---|---|
| Revenue from product sales | $4,582m | $4,501m |
| Gross profit | $1,027m | $1,129m |
| Profit (loss) before taxation | $63m | $472m |
| Profit (loss) attributable to equity shareholders | $(235)m | $233m |
| Basic earnings (loss) per share | (56) cents | 55 cents |
| Headline earnings (loss) | $(46)m | $489m |
| Adjusted EBITDA | $1,420m | $1,792m |
| Net cash inflow from operating activities | $971m | $1,804m |
| Capital expenditure | $1,042m | $1,028m |
| Total borrowings | $2,410m | $2,169m |
| Adjusted net debt | $1,268m | $878m |
| Cash and cash equivalents, net of bank overdraft | Approximately $955m | $1,106m |
Gross margin was approximately 22.4% in 2023 versus 25.1% in 2022. The reported net profit margin was approximately negative 4.8% versus positive 5.6% in the prior year. Adjusted EBITDA margin was approximately 31.0% versus 39.8%.
Material Changes Versus the Prior Comparable Period
- Revenue increased approximately 1.8%, but attributable gold sold declined to 2.273 million ounces from 2.385 million ounces. The average gold price received increased to $1,928 per ounce from $1,793.
- Adjusted EBITDA decreased approximately 20.8%, primarily because of higher operating, exploration and evaluation costs, environmental provisions, restructuring costs and lower gold sold.
- The Company moved from $233m of attributable profit to a $235m attributable loss. Significant adverse items included corporate restructuring costs, higher environmental provisions for legacy tailings storage facilities, care-and-maintenance and retrenchment costs at Córrego do Sítio, higher operating and exploration costs, foreign-exchange losses and higher tax expense.
- Operating cash flow declined approximately 46.2%, while capital expenditure was broadly stable, resulting in substantially lower cash generation.
- Adjusted net debt increased by $390m, and the adjusted net debt-to-adjusted EBITDA ratio rose to 0.89 times from 0.49 times. Management’s through-cycle target remains 1.0 times.
Guidance, Outlook, Risks and Unusual Items
- Heavy rainfall and flooding at the Tropicana mine in Western Australia temporarily disrupted power, mining and road access. Processing was operating at reduced throughput using stockpiled ore, and further suspension was possible if consumables were depleted.
- Management expects some Tropicana production impact in the first half of 2024, with most of the reduction expected to be recovered in the second half. February 2024 gold production and cost guidance was maintained.
- The Company determined that previously issued 2022 annual and 30 June 2023 interim financial statements should no longer be relied upon because of errors in the Obuasi deferred tax asset calculation, including an incorrect interpretation of Ghanaian tax law, incorrect underlying data and potential misapplication of IAS 12.
- Preliminary restatement adjustments reduce 2022 profit by $65m and reduce first-half 2023 profit by $80m. The deferred-tax-related component is $49m for 2022 and $79m for first-half 2023; additional immaterial errors account for $16m and $1m, respectively.
- The restatement is non-cash and does not affect production, costs or cash flow. Restated amounts remain subject to change pending completion of company and auditor procedures.
- Management identified one or more material weaknesses in internal control over financial reporting. The Company expects to report that internal control and disclosure controls were ineffective as of both 31 December 2022 and 31 December 2023; the 2023 evaluation was not complete at the filing date.
- Key ongoing risks include gold-price and foreign-exchange volatility, inflation, regulatory and environmental requirements, mining accidents, supply-chain disruption, litigation, operational interruptions, and the inability to remediate material control weaknesses.
Important Facts for Investors to Verify
- Verify the final audited 2023 Form 20-F and the final restated 2022 and first-half 2023 financial statements.
- Review the final auditor conclusions and management’s remediation plan for material weaknesses in internal and disclosure controls.
- Monitor Tropicana’s recovery, production volumes and costs during the first half of 2024.
- Assess whether operating cash flow and adjusted net debt remain consistent with the Company’s 1.0-times through-cycle leverage target.
- Reconcile non-GAAP measures, including adjusted EBITDA and adjusted net debt, to the final IFRS financial statements and debt-covenant definitions.