Why AngloGold Shares Are Surging Today

Author: Lekha Gupta | February 23, 2024 01:09pm

AngloGold Ashanti plc (NYSE:AU) shares are trading higher after the company reported FY23 gold income of $4.48 billion vs. $4.39 billion a year ago.

The company witnessed gold production of 2.593Moz in FY23, which declined 3% Y/Y due to lower ore tonnes processed and recovered grades.  

In FY23, gold production was higher at Sunrise Dam (+9%), Iduapriem (+8%), Cuiabá (+5%), Kibali (+2%) and Tropicana (+1%), which was more than offset by lower production at Siguiri (-21%), Cerro Vanguardia (-11%), Obuasi (-10%), Geita (-7%) and Serra Grande (-2%). 

AngloGold reported total cash costs per ounce of $1,108/oz (vs. $1,000/oz a prior year) and all-in sustaining cost per ounce of $1,538/oz, above guidance on higher sustaining capital expenditure.

AngloGold made an important new gold discovery in the U.S., declaring a gold Inferred Mineral Resource of 9.1Moz at an average grade of 0.99g/t, at the Merlin deposit in Nevada, which takes total gold Mineral Resource in the Beatty District in Nevada to 16.6Moz as of December 31, 2023. 

Gross profit declined to $1.03 billion from $1.13 billion the prior year. 

Adjusted net debt stood at $1.268 billion compared to $878 million in FY22. Operating cash flow stood at $971 million and free cash flow of $109 million in the year.

Outlook: For FY24, AngloGold revised the outlook for gold production to 2.590Moz-2.790Moz (from 2.530Moz-2.730Moz), all-in sustaining costs to $1,500/oz-$1,600/oz (from $1,489/oz-$1,553/oz) and capital expenditure to $1.130 billion-$1.360 billion (from $1.025 billion-$1.142 billion).

For FY25, the company expects gold production of 2.650 Moz-2.850 Moz, all-in sustaining costs of $1.475/oz-$1.575/oz and capital expenditure of $1.175 billion-$1.425 billion. 

Price Action: AU shares are up 6.52% at $18.13 on the last check Friday.

Photo via Shutterstock

Posted In: AU