Christine Ramon, Interim CEO
ANGLOGOLD ASHANTI’S production for the year ended December 31, 2020 is expected to be 3.047 million ounces, compared to 3.281 million ounces for the year ended December 31, 2019, with the decline in production mainly due to the sale of the South African operations and the impact of the COVID-19 pandemic on production.
AngloGold Ashanti delivered a solid production performance for the year, taking into consideration the challenges created by the pandemic.
The performance for the year was underpinned by a record year at Geita, and steady performances at Kibali, Iduapriem, Siguiri, Sunrise Dam and AGA Mineração which helped offset declines in production at Tropicana, Cerro Vanguardia and Serra Grande.
The Obuasi Redevelopment Project continued its ramp-up, delivering 127,000oz of production despite delays in receiving equipment and in the arrival of critical skills for the project as a result of lockdowns in various jurisdictions during the year.
The company has assured its shareholders that it is certain that headline earnings for the period are expected to be between $962 million and $1,037 million, with headline earnings per share of between 229 cents and 247 cents.
Headline earnings and HEPS for the comparative period in 2019 were $379 million and US 91 cents, respectively.
The total basic earnings from continuing operations for the period are expected to be between $910 million and $982 million, resulting in total basic earnings per share from continuing operations of between US 216 cents and US 233 cents. The basic earnings – continuing operations and EPS – continuing operations for the comparative period were $364 million and US 87 cents, respectively.
The expected overall increases in headline earnings and basic earnings – continuing operations for the period compared to the comparative period were primarily because gold price received a 27% increase; weaker local currencies more than offset inflationary increases across operating jurisdictions; income from joint ventures, mainly Kibali, increased by $110 million (post-tax) or US 26 cents per share; and Care & maintenance costs of $47 million (post-tax) or 11 cents per share incurred at Obuasi in the comparative period was not repeated in the current period.