Announces Annual General Meeting Date and Restatement of Previously Issued Financial Statements
(BUSINESS WIRE) -- AngloGold Ashanti plc (“AngloGold Ashanti”, “AGA” or the “Company”) is pleased to provide its preliminary unaudited condensed consolidated financial statements as of and for the six months and the year ended 31 December 2023 (the “FY 2023 Earnings Release”).
FY 2023 Financial and Operating Update
The FY 2023 Earnings Release should be read together with AngloGold Ashanti’s preliminary financial update for the six months and the year ended 31 December 2023, which was published by the Company on 23 February 2024 (the “FY 2023 Preliminary Financial Update”). No changes have been made in the FY 2023 Earnings Release with respect to the production, cost or cash flow information included in the FY 2023 Preliminary Financial Update. The FY 2023 Preliminary Financial Update combined with the FY 2023 Earnings Release provide the Company’s financial and operating update for the six months and the year ended 31 December 2023.
Announcement of Annual General Meeting Date
The 2024 Annual General Meeting of AngloGold Ashanti (“AGM”) will be held on Tuesday, 28 May 2024 in Denver, Colorado, USA. Shareholders are encouraged to participate in the AGM virtually and further details on how to participate and vote in the AGM will be set out in the AGM Notice to be published by AngloGold Ashanti in due course. The record date for the AGM is Tuesday, 2 April 2024.
Non-Reliance on and Restatement of Previously Issued Financial Statements
As previously reported in the FY 2023 Preliminary Financial Update, during the FY 2023 year-end audit process, AngloGold Ashanti found a potential error in the calculation of a deferred tax asset with respect to the Obuasi mine, which impacts its audited consolidated financial statements as of and for the year ended 31 December 2022 and its unaudited condensed consolidated interim financial statements as of and for the six-month period ended 30 June 2023. Following further discussions regarding this matter with its previous auditor, Ernst & Young Inc., and its current auditor, PricewaterhouseCoopers Inc., AngloGold Ashanti has concluded that the affected financial statements contained errors and has determined that it will restate the affected financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The error related to the reported amount of the deferred tax asset with regard to the Obuasi mine is non-cash in nature and has no impact on production, costs or cash flow. For further information, refer to “Non-Reliance on and Restatement of Previously Issued Financial Statements” on pages 2 to 6 below.
GROUP - Key statistics | ||||||||||||||||
Six months | Six months | Six months | Year ended | Year ended | ||||||||||||
| Restated(2) | Restated(2) | Restated(2) | ||||||||||||||
|
| US Dollar / Imperial |
|
| ||||||||||||
Financial review |
|
|
|
| ||||||||||||
(Loss) profit before taxation | - $m | (13 | ) | 76 | 62 |
| 63 |
| 472 | |||||||
Adjusted EBITDA* | - $m | 744 |
| 676 | 923 |
| 1,420 |
| 1,792 | |||||||
(Loss) profit attributable to equity shareholders | - $m | (196 | ) | (39 | ) | (69 | ) | (235 | ) | 233 | ||||||
| - US cents/share | (47 | ) | (9 | ) | (16 | ) | (56 | ) | 55 | ||||||
Headline (loss) earnings(1) | - $m | (107 | ) | 61 | 185 |
| (46 | ) | 489 | |||||||
| - US cents/share | (25 | ) | 14 | 44 |
| (11 | ) | 116 | ||||||||
Total borrowings | - $m | 2,410 |
| 2,091 | 2,169 |
| 2,410 |
| 2,169 | |||||||
Adjusted net debt* | - $m | 1,268 |
| 1,194 | 878 |
| 1,268 |
| 878 | |||||||
Total borrowings to profit (loss) before taxation | - times | 38.25 |
| 15.15 |
| 4.60 |
| 38.25 |
| 4.60 | ||||||
Adjusted net debt* to Adjusted EBITDA* | - times | 0.89 |
| 0.75 | 0.49 |
| 0.89 |
| 0.49 | |||||||
(1) The financial measures “headline (loss) earnings” and “headline (loss) earnings per share” are not calculated in accordance with IFRS. These measures, however, are required to be disclosed by the Johannesburg Stock Exchange (JSE) Listings Requirements and therefore do not constitute Non-GAAP financial measures for purposes of the rules and regulations of the US Securities and Exchange Commission (“SEC”) applicable to the use and disclosure of Non-GAAP financial measures.
(2) For further information, refer to “Non-Reliance on and Restatement of Previously Issued Financial Statements” on pages 2 to 6 below.
* Refer to “Non-GAAP disclosure” for definitions and reconciliations.
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
FINANCIAL REVIEW
Full year review
Earnings
The basic loss (loss attributable to equity shareholders) for the year ended 31 December 2023 was $235m, or 56 US cents per share, compared with basic earnings (profit attributable to equity shareholders) of $233m, or 55 US cents per share, for the year ended 31 December 2022. Basic earnings were down year-on-year mainly due to lower gold sold (54 US cents per share), higher costs related to the corporate restructuring (taxes and fees) (75 US cents per share), higher environmental provisions for legacy tailings storage facilities (“TSFs”) (16 US cents per share), higher care and maintenance and retrenchment costs associated with the Córrego do Sítio (“CdS”) operation that was placed on care and maintenance in August 2023 (15 US cents per share), higher operating and exploration costs (40 US cents per share), higher foreign exchange losses (7 US cents per share), and higher tax expense (15 US cents per share). These effects were partially offset by higher equity-accounted joint venture income (11 US cents per share), higher finance income (11 US cents per share), lower impairments and derecognitions recognised in Brazil (26 US cents per share), and a higher average gold price received per ounce* (76 US cents per share).
Headline loss‡ for the year ended 31 December 2023 was $46m, or 11 US cents per share, compared with headline earnings of $489m, or 116 US cents per share, for the year ended 31 December 2022. Headline earnings‡ were down year-on-year mainly due to lower gold sold (54 US cents per share), higher costs related to the corporate restructuring (taxes and fees) (75 US cents per share), higher environmental provisions for legacy TSFs (16 US cents per share), higher care and maintenance and retrenchment costs associated with CdS (15 US cents per share), higher operating and exploration costs (40 US cents per share), higher foreign exchange losses (7 US cents per share), and higher tax expense (9 US cents per share). These effects were partially offset by higher equity-accounted joint venture income (11 US cents per share), higher finance income (11 US cents per share), and a higher average gold price received per ounce* (76 US cents per share).
Adjusted EBITDA*
Adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”)* for the year ended 31 December 2023 was $1,420m, compared with $1,792m for the year ended 31 December 2022. Adjusted EBITDA* was lower year-on-year mainly due to higher total operating costs, higher exploration and evaluation costs, higher environmental provisions for legacy TSFs as a result of new legislation in Brazil relating to emergency response and safety management for TSFs, costs related to the corporate restructuring and lower gold sold. This decrease was partially offset by higher equity-accounted joint venture income and the higher average gold price received per ounce*.
Balance Sheet
Adjusted net debt* increased to $1,268m at 31 December 2023 from $878m at 31 December 2022. This year-on-year increase is mainly due to lower cash generation from operating activities, lower dividends received from the Kibali joint venture and the once-off costs associated with the corporate restructuring. The ratio of Adjusted net debt* to Adjusted EBITDA* was 0.89 times at 31 December 2023 from 0.49 times at 31 December 2022. The Company remains committed to maintaining a strong balance sheet with an Adjusted net debt* to Adjusted EBITDA* target ratio of 1.0 times through the cycle. The balance sheet remained strong at year-end. At 31 December 2023, the Company had cash and cash equivalents of approximately $955m (net of bank overdraft).
Second half year review
Earnings
The basic loss (loss attributable to equity shareholders) for the second half of 2023 was $196m, or 47 US cents per share, compared to a basic loss of $69m, or 16 US cents per share, for the second half of 2022.
Headline loss‡ for the second half of 2023 was $107m, or 25 US cents per share, compared to headline earnings‡ of $185m, or 44 US cents per share, for the second half of 2022.
Adjusted EBITDA*
Adjusted EBITDA* was $744m during the second half of 2023, compared to $923m during the second half of 2022.
‡ The financial measures “headline (loss) earnings” and “headline (loss) earnings per share” are not calculated in accordance with IFRS. These measures, however, are required to be disclosed by the Johannesburg Stock Exchange (JSE) Listings Requirements and therefore do not constitute Non-GAAP financial measures for purposes of the rules and regulations of the SEC applicable to the use and disclosure of Non-GAAP financial measures.
* Refer to “Non-GAAP disclosure” for definitions and reconciliations.
NON-RELIANCE ON AND RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
As previously announced in the FY 2023 Preliminary Financial Update, on 21 February 2024, the Audit and Risk Committee of the board of directors (the “Audit Committee”) of the Company, as successor issuer to AngloGold Ashanti Limited (currently known as AngloGold Ashanti (Pty) Ltd) (“AGA Limited”), based on the recommendation of, and after consultation with, management, concluded that (i) AGA Limited’s previously issued audited consolidated financial statements as of and for the financial year ended 31 December 2022, included in the annual report on Form 20-F for the year ended 31 December 2022 filed by AGA Limited with the United States Securities and Exchange Commission (“SEC”) on 17 March 2023 (the “2022 Form 20-F”) (the “Original Full-Year 2022 Financial Statements”) and (ii) AGA Limited’s previously issued unaudited condensed consolidated interim financial statements as of and for the six-month period ended 30 June 2023, included in a report on Form 6-K filed by AGA Limited with the SEC on 4 August 2023 (the “Half-Year 2023 Form 6-K”) (the “Original Half- Year 2023 Financial Statements” and together with the Original Full-Year 2022 Financial Statements, the “Affected Financials”), should no longer be relied upon.
The Company has concluded that the Affected Financials contained an error related to the reported amount of the deferred tax asset with regard to the Obuasi mine. The Company believes the error relates to an incorrect interpretation of Ghanaian tax law with respect to the Obuasi mine, combined with the use of incorrect underlying data in the deferred tax model and the potential misapplication of the requirements of International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), specifically, of IAS 12 – Income Taxes, in both cases with respect to the Obuasi mine. The Affected Financials will accordingly be restated in accordance with IFRS as issued by the IASB. Additionally, as part of preparing the restatements of the Affected Financials, the Company will also correct other immaterial errors which it identified in those Affected Financials.
Following further discussions regarding this matter with Ernst & Young Inc., AGA Limited’s independent registered public accounting firm for the financial year ended 31 December 2022, and PricewaterhouseCoopers Inc., the Company’s independent registered public accounting firm for the financial year ended 31 December 2023, the Company has determined that it needs to restate the Affected Financials resulting in a reduction in profit for the year ended 31 December 2022 by $49m and a reduction in profit for the half year ended 30 June 2023 by $79m due to the error related to the reported amount of the deferred tax asset with regard to the Obuasi mine as mentioned above. The Company will also correct other immaterial errors previously identified in the Affected Financials, which will further reduce profit for the year ended 31 December 2022 by $16m and further reduce profit for the half year ended 30 June 2023 by $1m. For further information on the preliminary estimated restated amounts, refer to “—Schedules of Affected Items” below. The Company notes that such errors have an aggregate negative impact of $65m on profit for the year ended 31 December 2022 (compared to up to approximately $113m as previously disclosed in its FY 2023 Preliminary Financial Update) and an aggregate negative impact of $80m on profit for the half year ended 30 June 2023 (compared to up to approximately $50m as previously disclosed in its FY 2023 Preliminary Financial Update).
The Audit Committee has discussed the matters described herein with management, with Ernst & Young Inc. and with PricewaterhouseCoopers Inc.
As previously announced in the FY 2023 Preliminary Financial Update, similarly, any press releases, earnings releases, and investor communications describing the Company’s financial performance for the above-referenced periods should no longer be relied upon.
Schedules of Affected Items
The following tables summarise the previously reported amounts affected by the errors identified, as well as the preliminary estimated adjustments and the preliminary estimated restated amounts.
GROUP – INCOME STATEMENT | |||||||||
US Dollar million | Year ended Dec 2022 | ||||||||
| Previously reported |
| Adjustment Unaudited |
| Restated Unaudited | ||||
Cost of sales | (3,362 | ) | (4 | ) | (3,366 | ) | |||
Gross profit | 1,133 |
| (4 | ) | 1,129 |
| |||
Impairment, derecognition of assets and profit (loss) on disposal | (304 | ) | (11 | ) | (315 | ) | |||
Foreign exchange and fair value adjustments | (128 | ) | 3 |
| (125 | ) | |||
Share of associates and joint ventures' profit | 166 |
| (5 | ) | 161 |
| |||
Profit before taxation | 489 |
| (17 | ) | 472 |
| |||
Taxation | (173 | ) | (48 | ) | (221 | ) | |||
Profit for the year | 316 |
| (65 | ) | 251 |
| |||
Earnings attributable to equity shareholders | 297 |
| (64 | ) | 233 |
| |||
Earnings attributable to non-controlling interests | 19 |
| (1 | ) | 18 |
| |||
Earnings per share |
|
|
| ||||||
Basic earnings per ordinary share (US cents) | 71 |
| (16 | ) | 55 |
| |||
Diluted earnings per ordinary share (US cents) | 71 |
| (16 | ) | 55 |
| |||
Headline earnings (1) | 544 |
| (55 | ) | 489 |
| |||
Headline earnings per share (1) | 129 |
| (13 | ) | 116 |
| |||
Diluted headline earnings per ordinary share (US cents) (1) (3) | 129 |
| (13 | ) | 116 |
| |||
Basic weighted average number of shares | 420,197,062 |
| — |
| 420,197,062 |
| |||
Diluted weighted average number of shares | 420,869,866 |
| — |
| 420,869,866 |
| |||
(1) The financial measures “headline earnings” and “headline earnings per share” are not calculated in accordance with IFRS. These measures, however, are required to be disclosed by the Johannesburg Stock Exchange (JSE) Listings Requirements and therefore do not constitute Non-GAAP financial measures for purposes of the rules and regulations of the SEC applicable to the use and disclosure of Non-GAAP financial measures.
(2) Calculated on the basic weighted average number of ordinary shares.
(3) Calculated on the diluted weighted average number of ordinary shares.
GROUP – INCOME STATEMENT | |||||||||
US Dollar million | Six months ended June 2023 | ||||||||
| Previously reported | Adjustment Unaudited | Restated Unaudited | ||||||
Restructuring, care & maintenance and other (expenses) income | (58 | ) | (10 | ) | (68 | ) | |||
Share of associates and joint ventures' profit | 75 |
| 9 |
| 84 |
| |||
Profit before taxation | 77 |
| (1 | ) | 76 |
| |||
Taxation | (32 | ) | (79 | ) | (111 | ) | |||
Profit (loss) for the year | 45 |
| (80 | ) | (35 | ) | |||
Earnings (loss) attributable to equity shareholders | 40 |
| (79 | ) | (39 | ) | |||
Earnings attributable to non-controlling interests | 5 |
| (1 | ) | 4 |
| |||
Earnings per share |
|
|
| ||||||
Basic earnings (loss) per ordinary share (US cents) | 10 |
| (19 | ) | (9 | ) | |||
Diluted earnings (loss) per ordinary share (US cents) | 10 |
| (19 | ) | (9 | ) | |||
Headline earnings (1) | 140 |
| (79 | ) | 61 |
| |||
Headline earnings per share (1) | 33 |
| (19 | ) | 14 |
| |||
Diluted headline earnings per ordinary share (US cents) (1) (3) | 33 |
| (19 | ) | 14 |
| |||
Basic weighted average number of shares | 420,818,545 |
| — |
| 420,818,545 |
| |||
Diluted weighted average number of shares | 421,077,248 |
| (258,703 | ) | 420,818,545 |
| |||
(1) The financial measures “headline earnings” and “headline earnings per share” are not calculated in accordance with IFRS. These measures, however, are required to be disclosed by the Johannesburg Stock Exchange (JSE) Listings Requirements and therefore do not constitute Non-GAAP financial measures for purposes of the rules and regulations of the SEC applicable to the use and disclosure of Non-GAAP financial measures.
(2) Calculated on the basic weighted average number of ordinary shares.
(3) Calculated on the diluted weighted average number of ordinary shares.
GROUP – STATEMENT OF FINANCIAL POSITION | |||||||
US Dollar million |
| As at Dec 2022 |
| ||||
Previously reported | Adjustment | Restated | |||||
|
| Unaudited | Unaudited | ||||
Assets |
|
|
| ||||
Non-current assets |
|
|
| ||||
Tangible assets | 4,209 | (1 | ) | 4,208 | |||
Investments in associates and joint ventures | 1,100 | (9 | ) | 1,091 | |||
Deferred taxation | 72 | (49 | ) | 23 | |||
Equity and liabilities |
|
|
| ||||
Shareholders' equity | 4,100 | (60 | ) | 4,040 | |||
Non-controlling interests | 34 | 1 |
| 35 | |||
Non-current liabilities |
|
|
| ||||
Lease liabilities | 102 | 13 |
| 115 | |||
Environmental rehabilitation and other provisions | 634 | (38 | ) | 596 | |||
Current liabilities |
|
|
| ||||
Lease liabilities | 84 | (13 | ) | 71 | |||
Environmental rehabilitation and other provisions | 42 | 39 |
| 81 | |||
|
|
|
| ||||
US Dollar million |
| As at June 2023 |
| ||||
| Previously reported |
| Adjustment |
| Restated | ||
|
|
|
| Unaudited |
| Unaudited | |
Assets |
|
|
| ||||
Non-current assets |
|
|
| ||||
Tangible assets | 4,277 | (11 | ) | 4,266 | |||
Deferred taxation | 146 | (105 | ) | 41 | |||
Equity and liabilities |
|
|
| ||||
Shareholders' equity | 4,048 | (139 | ) | 3,909 | |||
Non-current liabilities |
|
|
| ||||
Deferred taxation | 318 | 23 |
| 341 | |||
The restated amounts shown herein are preliminary, unaudited and unreviewed and may be subject to change as the Company completes its procedures and prepares the restatements of the Affected Financials, and the independent registered public accounting firms, PricewaterhouseCoopers Inc. and Ernst & Young Inc., complete their procedures.
Controls and Procedures
As previously disclosed in the FY 2023 Preliminary Financial Update, as a result of the errors described above and the related restatements, management has identified one or more material weaknesses in the Company’s internal control over financial reporting. Management has accordingly concluded that the Company’s internal control over financial reporting was not effective as of 31 December 2022 and its disclosure controls and procedures were similarly not effective as of 31 December 2022. In addition, given that the conclusion to restate the Affected Financials was reached subsequent to 31 December 2023 and related remediation actions were not implemented as of 31 December 2023, the Company will report in its annual report on Form 20-F for the year ended 31 December 2023 (the “2023 Form 20-F”) that its internal control over financial reporting and its disclosure controls and procedures were not effective as of 31 December 2023.
Neither management nor PricewaterhouseCoopers Inc. has completed its evaluation of the effectiveness of internal control over financial reporting as of 31 December 2023.
Other Information
The Company believes that in light of its intention to file the 2023 Form 20-F in the next few weeks, it is preferable to present any restated Original Full-Year 2022 Financial Statements together with the Company’s audited consolidated financial statements as of and for the year ended 31 December 2023 in that 2023 Form 20-F. The Company believes this will allow readers to review more easily all pertinent data in a single document and therefore does not plan to amend the 2022 Form 20-F. In addition, the Company plans to present the restated Original Half-Year 2023 Financial Statements either in an amendment to the Half-Year 2023 Form 6-K or in the 2023 Form 20-F.
CORPORATE UPDATE
Tropicana Rainfall Event
Gold production at the Tropicana gold mine in Western Australia was impacted by heavy rains and flooding during the month of March. Tropicana is a joint operation between AngloGold Ashanti (70 percent and the operator), and AFB Resources Pty Limited (30 percent), a subsidiary of Regis Resources Limited. Tropicana is located 200km east of Laverton and 330km east-northeast of Kalgoorlie in Western Australia.
The area in which the Tropicana gold mine is located received more than 350mm of rain in a 72-hour period from 9 March, almost 50% higher than its average annual rainfall. The subsequent flooding interrupted power supply to the processing plant and required mining operations to be temporarily suspended. Power has been restored to the site and access to the underground mine has resumed. However, mining from the open pits remains restricted until surface water is cleared through pumping and evaporation. There have been no safety incidents during this period and the mine infrastructure remains sound. The supply road to the Tropicana gold mine is flooded in parts and the processing plant is treating stockpiled ore at a reduced throughput rate. Processing may have to be suspended if consumable stocks at the site are exhausted before the road reopens.
While AngloGold Ashanti anticipates that there may be some impact on gold production at Tropicana in the first half of 2024, any decrease is expected to be largely recovered in the second half of 2024. Consequently, the Company does not believe that this event will have an impact on its gold production and cost guidance provided in February 2024, which guidance is therefore maintained.
By order of the Board |
|
| ||
M RAMOS | A CALDERON | G DORAN | ||
Chairperson | Chief Executive Officer | Chief Financial Officer | ||
19 March 2024 |
GROUP – INCOME STATEMENT |
| ||||||||||||||
| Six months | Six months | Six months | Year | Year | ||||||||||
| ended | ended | ended | ended | ended | ||||||||||
| Dec | Jun | Dec | Dec | Dec | ||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||
US Dollar million |
| Restated | Restated |
| Restated | ||||||||||
Revenue from product sales | 2,396 |
| 2,186 |
| 2,346 |
| 4,582 |
| 4,501 |
| |||||
Cost of sales | (1,792 | ) | (1,749 | ) | (1,771 | ) | (3,541 | ) | (3,366 | ) | |||||
Loss on non-hedge derivatives and other commodity contracts | (12 | ) | (2 | ) | (6 | ) | (14 | ) | (6 | ) | |||||
Gross profit | 592 |
| 435 |
| 569 |
| 1,027 |
| 1,129 |
| |||||
Corporate administration, marketing and related expenses | (50 | ) | (44 | ) | (37 | ) | (94 | ) | (79 | ) | |||||
Exploration and evaluation costs | (142 | ) | (112 | ) | (121 | ) | (254 | ) | (205 | ) | |||||
Impairment, derecognition of assets and profit (loss) on disposal | (95 | ) | (126 | ) | (313 | ) | (221 | ) | (315 | ) | |||||
Restructuring, care & maintenance and other (expenses) income (1) | (350 | ) | (68 | ) | (13 | ) | (418 | ) | (26 | ) | |||||
Finance income | 70 |
| 57 |
| 50 |
| 127 |
| 81 |
| |||||
Foreign exchange and fair value adjustments | (79 | ) | (75 | ) | (72 | ) | (154 | ) | (125 | ) | |||||
Finance costs and unwinding of obligations | (82 | ) | (75 | ) | (84 | ) | (157 | ) | (149 | ) | |||||
Share of associates and joint ventures’ profit | 123 |
| 84 |
| 83 |
| 207 |
| 161 |
| |||||
(Loss) profit before taxation | (13 | ) | 76 |
| 62 |
| 63 |
| 472 |
| |||||
Taxation | (174 | ) | (111 | ) | (127 | ) | (285 | ) | (221 | ) | |||||
(Loss) profit for the period | (187 | ) | (35 | ) | (65 | ) | (222 | ) | 251 |
| |||||
Allocated as follows: |
|
|
|
|
| ||||||||||
Equity shareholders | (196 | ) | (39 | ) | (69 | ) | (235 | ) | 233 |
| |||||
Non-controlling interests | 9 |
| 4 |
| 4 |
| 13 |
| 18 |
| |||||
| (187 | ) | (35 | ) | (65 | ) | (222 | ) | 251 |
| |||||
Basic (loss) earnings per ordinary share (US cents) (2) | (47 | ) | (9 | ) | (16 | ) | (56 | ) | 55 | ||||||
Diluted (loss) earnings per ordinary share (US cents) (3) | (47 | ) | (9 | ) | (16 | ) | (56 | ) | 55 |
| |||||
(1) Restructuring, care & maintenance and other (expenses) income for the second half of 2023 was $337m higher compared to the second half of 2022. This was mainly due to an increase in the corporate restructuring and project cost of $286m (mainly as a result of the cost associated with the AngloGold Ashanti corporate restructuring and related taxes), care and maintenance of $50m (mainly relating to the Córrego do Sítio (CdS) and Cuiabá mines) and an increase in retrenchment and related cost of $14m (mainly in Brazil), partially offset by other movements of $13m.
(2) Calculated on the basic weighted average number of ordinary shares.
(3) Calculated on the diluted weighted average number of ordinary shares.
The operating profit (loss) sub-total which was previously included in the presentation of the income statement has been removed as it is not an IFRS measure and not considered relevant to users of the annual financial statements.
GROUP – STATEMENT OF FINANCIAL POSITION | ||||||
At Dec | At Jun | At Dec | ||||
2023 | 2023 | 2022 | ||||
US Dollar million | Unaudited | Unaudited | Unaudited | |||
|
| Restated | Restated | |||
ASSETS |
|
|
| |||
Non-current assets |
|
|
| |||
Tangible assets | 4,419 | 4,266 | 4,208 | |||
Right of use assets | 142 | 152 | 156 | |||
Intangible assets | 107 | 104 | 106 | |||
Investments in associates and joint ventures | 599 | 1,129 | 1,091 | |||
Other investments | 1 | 1 | 3 | |||
Loans receivable | 358 | — | — | |||
Inventories | 2 | 4 | 5 | |||
Trade, other receivables and other assets | 254 | 222 | 231 | |||
Reimbursive right for post-retirement benefits | 35 | 12 | 12 | |||
Deferred taxation | 50 | 41 | 23 | |||
Cash restricted for use | 34 | 34 | 33 | |||
| 6,001 | 5,965 | 5,868 | |||
Current assets |
|
|
| |||
Loans receivable | 148 | — | — | |||
Inventories | 829 | 800 | 773 | |||
Trade, other receivables and other assets | 199 | 317 | 237 | |||
Cash restricted for use | 34 | 25 | 27 | |||
Cash and cash equivalents | 964 | 722 | 1,108 | |||
| 2,174 | 1,864 | 2,145 | |||
|
|
|
| |||
Total assets | 8,175 | 7,829 | 8,013 | |||
EQUITY AND LIABILITIES |
|
|
| |||
Share capital and premium | 420 | — | — | |||
Accumulated profits and other reserves | 3,291 | 3,909 | 4,040 | |||
Shareholders’ equity | 3,711 | 3,909 | 4,040 | |||
Non-controlling interests | 29 | 33 | 35 | |||
Total equity | 3,740 | 3,942 | 4,075 | |||
Non-current liabilities |
|
|
| |||
Borrowings | 2,032 | 1,896 | 1,965 | |||
Lease liabilities | 98 | 106 | 115 | |||
Environmental rehabilitation and other provisions | 636 | 611 | 596 | |||
Provision for pension and post-retirement benefits | 64 | 68 | 71 | |||
Trade and other payables | 5 | 8 | 7 | |||
Deferred taxation | 395 | 341 | 300 | |||
| 3,230 | 3,030 | 3,054 | |||
Current liabilities |
|
|
| |||
Borrowings | 207 | 17 | 18 | |||
Lease liabilities | 73 | 72 | 71 | |||
Environmental rehabilitation and other provisions | 80 | 103 | 81 | |||
Trade and other payables | 772 | 641 | 667 | |||
Taxation | 64 | 19 | 45 | |||
Bank overdraft | 9 | 5 | 2 | |||
| 1,205 | 857 | 884 | |||
|
|
|
| |||
Total liabilities | 4,435 | 3,887 | 3,938 | |||
|
|
|
| |||
Total equity and liabilities | 8,175 | 7,829 | 8,013 | |||
GROUP – STATEMENT OF CASH FLOWS | |||||||||||||||
Six months ended Dec |
| Six months ended Jun |
| Six months ended Dec |
| Year ended Dec |
| Year ended Dec | |||||||
US Dollar million | 2023 Unaudited |
| 2023 Unaudited |
| 2022 Unaudited |
| 2023 Unaudited |
| 2022 Unaudited | ||||||
Cash flows from operating activities | 555 | 316 | 714 | 871 | 1,244 | ||||||||||
Dividends received from joint ventures | 143 |
| 37 |
| 145 |
| 180 |
| 694 |
| |||||
Taxation refund | 36 |
| — |
| 32 |
| 36 |
| 32 |
| |||||
Taxation paid | (56 | ) | (60 | ) | (79 | ) | (116 | ) | (166 | ) | |||||
Net cash inflow from operating activities | 678 |
| 293 |
| 812 |
| 971 |
| 1,804 |
| |||||
Cash flows from investing activities | (589 | ) | (453 | ) | (594 | ) | (1,042 | ) | (1,028 | ) | |||||
Interest capitalised and paid | — |
| — |
| (1 | ) | — |
| (2 | ) | |||||
Acquisition of assets | — |
| — |
| (152 | ) | — |
| (517 | ) | |||||
Dividends from associates and other investments | 6 |
| 6 |
| 10 |
| 12 |
| 18 |
| |||||
Proceeds from disposal of tangible assets | 8 |
| 6 |
| 8 |
| 14 |
| 8 |
| |||||
Other investments and assets acquired | — |
| — |
| — |
| — |
| (16 | ) | |||||
Proceeds from disposal of other investments | 20 |
| — |
| — |
| 20 |
| — |
| |||||
Loans advanced | — |
| (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||
(Increase) decrease in cash restricted for use | (8 | ) | (1 | ) | 6 |
| (9 | ) | (4 | ) | |||||
Interest received | 60 |
| 49 |
| 49 |
| 109 |
| 81 |
| |||||
Net cash outflow from investing activities | (503 | ) | (394 | ) | (675 | ) | (897 | ) | (1,461 | ) | |||||
Cash flows from financing activities | (19 | ) | — | — | (19 | ) | — | ||||||||
Proceeds from borrowings | 335 |
| 8 |
| 64 |
| 343 |
| 266 |
| |||||
Repayment of borrowings | (13 | ) | (74 | ) | (88 | ) | (87 | ) | (184 | ) | |||||
Repayment of lease liabilities | (50 | ) | (44 | ) | (42 | ) | (94 | ) | (82 | ) | |||||
Finance costs - borrowings | (55 | ) | (56 | ) | (50 | ) | (111 | ) | (99 | ) | |||||
Finance costs - leases | (6 | ) | (5 | ) | (5 | ) | (11 | ) | (10 | ) | |||||
Other borrowing costs | — |
| (1 | ) | — |
| (1 | ) | (11 | ) | |||||
Dividends paid | (31 | ) | (76 | ) | (134 | ) | (107 | ) | (203 | ) | |||||
Net cash inflow (outflow) from financing activities | 161 |
| (248 | ) | (255 | ) | (87 | ) | (323 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 336 | (349 | ) | (118 | ) | (13 | ) | 20 | |||||||
Translation | (98 | ) | (40 | ) | (42 | ) | (138 | ) | (68 | ) | |||||
Cash and cash equivalents at beginning of period | 717 |
| 1,106 |
| 1,266 |
| 1,106 |
| 1,154 |
| |||||
Cash and cash equivalents at end of period | 955 |
| 717 |
| 1,106 |
| 955 |
| 1,106 | ||||||
| Headline (loss) earnings (1) | |||||||||||||||
Six months | Six months | Six months | Year ended | Year ended | |||||||||||
ended Dec | ended Jun | ended Dec | Dec | Dec | |||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||
US Dollar million |
| Restated | Restated |
| Restated | ||||||||||
|
|
|
|
|
| ||||||||||
The (loss) profit attributable to equity shareholders has been adjusted by the following to arrive at headline (loss) earnings: | |||||||||||||||
(Loss) profit attributable to equity shareholders | (196 | ) | (39 | ) | (69 | ) | (235 | ) | 233 |
| |||||
Net impairment on tangible assets and right of use assets | 100 |
| 92 |
| 315 |
| 192 |
| 315 |
| |||||
Taxation on net impairment of tangible assets and right of use assets | (7 | ) | (21 | ) | (60 | ) | (28 | ) | (60 | ) | |||||
(Profit) loss on derecognition of assets | (3 | ) | 38 |
| 2 |
| 35 |
| 4 |
| |||||
Taxation on derecognition of assets | 1 |
| (6 | ) | — |
| (5 | ) | — |
| |||||
Profit on disposal of tangible assets | (2 | ) | (4 | ) | (4 | ) | (6 | ) | (4 | ) | |||||
Net impairment on investments | — |
| 1 |
| 1 |
| 1 |
| 1 |
| |||||
Headline (loss) earnings | (107 | ) | 61 |
| 185 |
| (46 | ) | 489 |
| |||||
Headline (loss) earnings per ordinary share (US cents) (2) | (25 | ) | 14 |
| 44 |
| (11 | ) | 116 |
| |||||
Diluted headline (loss) earnings per ordinary share (US cents) (3) | (25 | ) | 14 |
| 44 |
| (11 | ) | 116 |
| |||||
Number of shares |
|
|
|
|
| ||||||||||
Weighted average number of shares | 420,971,227 |
| 420,818,545 |
| 420,074,065 |
| 421,105,111 |
| 420,197,062 |
| |||||
Dilutive potential of share options | — |
| — |
| — |
| — |
| 672,804 |
| |||||
Dilutive weighted average number of ordinary shares | 420,971,227 |
| 420,818,545 |
| 420,074,065 |
| 421,105,111 |
| 420,869,866 |
| |||||
(1) The financial measures “headline (loss) earnings” and “headline (loss) earnings per share” are not calculated in accordance with IFRS. These measures, however, are required to be disclosed by the Johannesburg Stock Exchange (JSE) Listings Requirements and therefore do not constitute Non-GAAP financial measures for purposes of the rules and regulations of the US Securities and Exchange Commission (“SEC”) applicable to the use and disclosure of Non-GAAP financial measures.
(2) Calculated on the basic weighted average number of ordinary shares.
(3) Calculated on the diluted weighted average number of ordinary shares.
Non-GAAP disclosure
From time to time AngloGold Ashanti may publicly disclose certain “Non-GAAP” financial measures in the course of its financial presentations, earnings releases, earnings conference calls and otherwise.
In this document, AngloGold Ashanti presents the financial items “Adjusted EBITDA”, “Adjusted net debt” and “average gold price received per ounce” which are not measures under IFRS. An investor should not consider these items in isolation or as alternatives to profit (loss) before taxation, total borrowings, gold income or any other measure of financial performance presented in accordance with IFRS or as an indicator of the AngloGold Ashanti group’s performance. The AngloGold Ashanti group uses certain Non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use.
Adjusted EBITDA
“Adjusted EBITDA” is a Non-GAAP measure and, as calculated and reported by AngloGold Ashanti, includes profit (loss) before taxation, amortisation of tangible, intangible and right of use assets, retrenchment costs at the operations, interest and dividend income, other gains (losses), care and maintenance costs, finance costs and unwinding of obligations, impairment and derecognition of assets, impairment of investments, profit (loss) on disposal of assets and investments, gain (loss) on unrealised non-hedge derivatives and other commodity contracts, fair value adjustments, repurchase premium and costs on settlement of issued bonds and the share of associates’ EBITDA. The Adjusted EBITDA calculation is based on the formula included in AngloGold Ashanti’s Revolving Credit Facility Agreements for compliance with the debt covenant formula.
Adjusted net debt
“Adjusted net debt” is a Non-GAAP measure and, as calculated and reported by AngloGold Ashanti, includes total borrowings adjusted for the unamortised portion of borrowing costs and IFRS 16 lease adjustments; less cash restricted for use and cash and cash equivalents (net of bank overdraft). The Adjusted net debt calculation is based on the formula included in AngloGold Ashanti’s Revolving Credit Facility Agreements for compliance with the debt covenant formula.
Average gold price received per ounce
“Average gold price received per ounce” is a Non-GAAP measure which gives an indication of revenue earned per ounce of gold sold and includes gold income and realised non-hedge derivatives in its calculation and serves as a benchmark of performance against the market spot gold price. This metric is calculated by dividing attributable gold income (“price received”) by attributable ounces of gold sold.
Reconciliations
A reconciliation of profit (loss) before taxation as included in AngloGold Ashanti’s preliminary unaudited condensed consolidated financial statements as of and for the six months and the year ended 31 December 2023 to “Adjusted EBITDA” for each of the six-month periods ended 31 December 2023, 30 June 2023 and 31 December 2022 and the years ended 31 December 2023 and 2022 is presented on a total (group) and segment basis in Note A.
A reconciliation of total borrowings as included in AngloGold Ashanti’s preliminary unaudited condensed consolidated financial statements as of and for the six months and the year ended 31 December 2023 to “Adjusted net debt” at 31 December 2023, 30 June 2023 and 31 December 2022 is presented on a total (group) basis in Note B.
A reconciliation of gold income as included in AngloGold Ashanti’s preliminary unaudited condensed consolidated financial statements as of and for the six months and the year ended 31 December 2023 to “average gold price received per ounce” for each of the six-month periods ended 31 December 2023, 30 June 2023 and 31 December 2022 and the years ended 31 December 2023 and 2022 is presented on a total (subsidiaries/joint ventures) basis in Note C.
A Adjusted EBITDA
For the six months ended 31 December 2023
(in US Dollar million, except as otherwise noted)
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Adjusted EBITDA (1) |
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