Business News of Wednesday, 20 March 2024
Source: www.ghanaweb.live
2024-03-20AngloGold Ashanti reports $46 million loss in 2023
AngloGold Ashanti
AngloGold Ashanti made a loss of $46 million, equivalent to 11 US cents per share, for the fiscal year 2023, Joy Business reports.
This marks a significant contrast to the previous year's figures of $489 million or 116 US cents per share for the year ended December 31, 2022.
The company's full year 2023 report attributed the decline in
Read full articleheadline earnings to various factors, including lower gold sales (54 US cents per share), increased costs related to corporate restructuring (taxes and fees) (75 US cents per share), and elevated care and maintenance expenses, among others.
However, these adverse effects were partially mitigated by higher equity-accounted joint venture income (11 US cents per share), increased finance income (11 US cents per share), and a rise in the average gold price received per ounce (76 US cents per share).
Adjusted earnings before interest, tax, depreciation, and amortization (Adjusted EBITDA) for the fiscal year ending December 31, 2023, amounted to $1.420 billion, in comparison to $1.792 billion for the preceding year.
AngloGold Ashanti highlighted that the lower Adjusted EBITDA was primarily due to escalated total operating costs, increased exploration and evaluation expenditures, and higher environmental provisions for legacy Tailings Storage Facilities (TSFs) in Brazil due to new legislation.
Regarding corporate updates, the company noted that gold production at the Tropicana gold mine in Western Australia was impacted by heavy rains and flooding in March 2023. The subsequent flooding disrupted power supply to the processing plant, leading to temporary suspension of mining operations.
While power has been restored, mining from open pits remains restricted pending clearance of surface water. The company anticipates a potential decrease in gold production at Tropicana in the first half of 2024, but expects a substantial recovery in the second half.
Despite these challenges, AngloGold Ashanti maintains its gold production and cost guidance provided in February 2024, believing that the event will not significantly affect its overall performance.