AngloGold Ashanti Limited (AU) 6-KCurrent report (foreign)

The following table presents cost of sales for the AngloGold Ashanti group for the three months ended 31 March 2023, the three months ended 31 March 2022 and the year ended 31 December 2022:

Gold production decreased marginally by 4,000 ounces, or one percent, from 588,000 ounces for the three months ended 31 March 2022 to 584,000 ounces for the three months ended 31 March 2023. Gold production is measured as ounces of refined gold in saleable form derived from the mining process. Gold production was steady year-on-year as AngloGold Ashanti continued to progress reinvestment in key assets to improve operating flexibility and extend mine lives, while also advancing a programme to buttress the tailings storage facility (“TSF”) which services the Queiroz plant at the Cuiabá mine complex in Brazil.

Gold production decreases were recorded at Kibali, Siguiri, Tropicana, AngloGold Ashanti Mineração and Serra Grande. At Kibali, gold production decreased by 12,000 ounces, or 16 percent, from 76,000 ounces for the three months ended 31 March 2022 to 64,000 ounces for the three months ended 31 March 2023, mainly due to lower grades mined at the underground mine as a result of mine sequencing, partly offset by higher tonnes processed. At Siguiri, gold production decreased by 5,000 ounces, or seven percent, from 68,000 ounces for the three months ended 31 March 2022 to 63,000 ounces for the three months ended 31 March 2023, mainly due to lower metallurgical recoveries due to the treatment of carbonaceous material, partly offset by higher tonnes processed. At Tropicana, gold production decreased marginally by 2,000 ounces, or three percent, from 66,000 ounces for the three months ended 31 March 2022 to 64,000 ounces for the three months ended 31 March 2023, mainly due to lower grades mined in the open pit, as mining focused on waste stripping at the Havana pit. At AngloGold Ashanti Mineração, gold production decreased by 16,000 ounces, or 23 percent, from 70,000 ounces for the three months ended 31 March 2022 to 54,000 ounces for the three months ended 31 March 2023, mainly due to lower tonnes of ore processed at the Cuiabá mine complex and lower grades mined at the Córrego do Sítio (“CdS”) mine complex. During the first quarter of 2023, Cuiabá produced 41,000 ounces, which comprised 16,000 ounces of gravimetric gold and 25,000 ounces of gold-in-concentrate. At Serra Grande, gold production decreased by 5,000 ounces, or 25 percent, from 20,000 ounces for the three months ended 31 March 2022 to 15,000 ounces for the three months ended 31 March 2023, mainly due to lower tonnes of ore treated and lower grades mined.

These decreases in gold production were partly offset by higher gold production from Iduapriem, Obuasi, Geita and Cerro Vanguardia. At Iduapriem, gold production increased by 12,000 ounces, or 24 percent, from 51,000 ounces for the three months ended 31 March 2022 to 63,000 ounces for the three months ended 31 March 2023, mainly due to higher tonnes treated together with higher grades as the mine accesses ore tonnes from Teberebie Cut 2 compared to the same period last year when ore was sourced mainly from Block 5 and stockpiles. At Obuasi, gold production increased by 22,000 ounces, or 58 percent, from 38,000 ounces for the three months ended 31 March 2022 to 60,000 ounces for the three months ended 31 March 2023, mainly due to higher tonnes processed due to continued ramp-up and higher grades mined. At Geita, gold production increased marginally by 1,000 ounces, or one percent, from 97,000 ounces for the three months ended 31 March 2022 to 98,000 ounces for the three months ended 31 March 2023, mainly due to higher grades mined, partly offset by lower tonnes processed due to a planned mill shutdown during the first quarter of 2023 (the operation successfully concluded scheduled mill maintenance and the planned replacement of the girth gear). At Cerro Vanguardia, gold production increased by 1,000 ounces, or two percent, from 41,000 ounces for the three months ended 31 March 2022 to 42,000 ounces for the three months ended 31 March 2023, mainly due to higher average grades mined.

At Sunrise Dam, gold production of 61,000 ounces for the three months ended 31 March 2023 remained unchanged from 61,000 ounces for the three months ended 31 March 2022.

Revenue from product sales decreased by $24 million, or two percent, from $1,052 million in the three months ended 31 March 2022 to $1,028 million in the three months ended 31 March 2023. The decrease in revenue from product sales was mainly due to a decrease in gold

income and by-product revenue. Gold income decreased by $9 million, or one percent, from $1,016 million in the three months ended 31 March 2022 to $1,007 million in the three months ended 31 March 2023. The decrease in gold income was mainly due to a decrease in ounces of gold sold, partly offset by an increase in the average gold price received of $14 per ounce. Gold sold decreased by 7,000 ounces, or one percent, from 524,000 ounces in the three months ended 31 March 2022 to 517,000 ounces in the three months ended 31 March 2023, which resulted in a decrease in gold income of $16 million. The average gold price received increased by $14 per ounce, or one percent, from $1,881 per ounce in the three months ended 31 March 2022 to $1,895 per ounce in the three months ended 31 March 2023, which resulted in an increase in gold income of $7 million. By-product revenue decreased by $15 million, or 42 percent, from $36 million in the three months ended 31 March 2022 to $21 million in the three months ended 31 March 2023, mainly due to a decrease in revenue from silver.

Cost of sales increased by $82 million, or 11 percent, from $757 million in the three months ended 31 March 2022 to $839 million in the three months ended 31 March 2023. The increase was primarily due to an increase in cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and rehabilitation and other non-cash costs as well as an increase in amortisation of tangible assets, partly offset by a decrease in amortisation of right of use assets and a decrease in inventory change.

Total cash costs increased by $76 million, or 13 percent, from $605 million in the three months ended 31 March 2022 to $681 million in the three months ended 31 March 2023. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other cash costs.

Cash operating costs increased by $73 million, or 13 percent, from $559 million in the three months ended 31 March 2022 to $632 million in the three months ended 31 March 2023. Cash operating costs increased mainly as a result of higher labour, contractors’ costs, fuel, power, consumables and services primarily due to cost increases which were experienced in the second and third quarters of 2022.

Royalties, which are generally calculated as a percentage of revenue, increased by $2 million, or five percent, from $43 million in the three months ended 31 March 2022 to $45 million in the three months ended 31 March 2023. The increase in royalty costs, mainly at Obuasi, was primarily due to an increase in the average gold price received per ounce and higher gold production.

Retrenchment costs included in cost of sales decreased by $1 million, or 50 percent, from $2 million in the three months ended 31 March 2022 to $1 million in the three months ended 31 March 2023.

Rehabilitation and other non-cash costs increased by $16 million, or 400 percent, from a credit of $4 million in the three months ended 31 March 2022 to a charge of $12 million in the three months ended 31 March 2023. The increase was primarily due to inflation, changes in cash flows and changes in discount rates (due to changes in global economic assumptions) used in calculating rehabilitation, compared to the same period in 2022.

Amortisation of tangible and right of use assets increased by $6 million, or four percent, from $134 million in the three months ended 31 March 2022 to $140 million in the three months ended 31 March 2023. There was no amortisation of intangible assets in either of the three months ended 31 March 2022 and 31 March 2023.

Amortisation of tangible assets increased by $8 million, or seven percent, from $115 million in the three months ended 31 March 2022 to $123 million in the three months ended 31 March 2023. The increase was mainly due to higher amortisation at Iduapriem (mainly due to higher gold production combined with higher deferred stripping amortisation at Teberebie Cut 2a which commenced in 2022) and at Obuasi (mainly due to higher gold production and the re-set of the useful life for the mining fleet), partly offset by lower amortisation at AGA Mineração (mainly due to lower gold production as a result of permitting issues at the Queiroz plant and the impact of impairments at CdS and Cuiabá recognised in 2022), at Serra Grande (mainly due to the impact of an impairment at Serra Grande recognised in 2022), at Tropicana (mainly due to lower deferred stripping and Mineral Reserve development amortisation than in the first quarter of 2022), at Geita (mainly due to lower Mineral Reserve development and tangible assets amortisation) and at Siguiri (mainly due to lower gold production).

Amortisation of right of use assets, as recognised in accordance with IFRS 16 Leases, decreased by $2 million, or 11 percent, from $19 million in the three months ended 31 March 2022 to $17 million in the three months ended 31 March 2023, mainly as a result of the impairment of leases in Brazil in December 2022.

Inventory change decreased by $15 million, or 75 percent, from $20 million in the three months ended 31 March 2022 to $5 million in the three months ended 31 March 2023. The decrease was primarily due to inventory of unsold gold concentrate in Brazil at 31 March 2023.

Impairment, derecognition of assets and profit (loss) on disposal decreased by $1 million from a loss of $1 million in the three months ended 31 March 2022 to nil in the three months ended 31 March 2023.

Other expenses decreased by $5 million, or 38 percent, from $13 million in the three months ended 31 March 2022 to $8 million in the three months ended 31 March 2023. The lower costs during the three months ended 31 March 2023 mainly related to a decrease in government fiscal claims of $5 million and a decrease in other indirect taxes of $4 million. The decrease was partly offset by an increase in legacy TSF costs of $4 million.

Finance costs and unwinding of obligations increased by $10 million, or 31 percent, from $32 million in the three months ended 31 March 2022 to $42 million in the three months ended 31 March 2023. Finance costs for borrowings increased by $3 million, or 12 percent, from $25 million in the three months ended 31 March 2022 to $28 million in the three months ended 31 March 2023, mainly due to finance costs paid across all of the group’s revolving credit facilities (“RCF”). Finance costs for leases of $3 million in the three months ended 31 March 2023 remained unchanged from $3 million in the three months ended 31 March 2022. Unwinding of obligations increased by $7 million, or 175 percent, from $4 million in the three months ended 31 March 2022 to $11 million in the three months ended 31 March 2023, mainly due to higher discounting of environmental provisions of $3 million and discounting of indirect taxes at Geita of $3 million in the three months ended 31 March 2023.

Share of associates and joint ventures’ profit decreased by $4 million, or 11 percent, from $35 million in the three months ended 31 March 2022 to $31 million in the three months ended 31 March 2023. The decrease was mainly due to a decrease in revenue at Kibali as a result of lower gold sales and net higher interest paid, partly offset by lower operating costs and other expenses.

Taxation expense decreased by $9 million, or 27 percent, from an expense of $33 million in the three months ended 31 March 2022 to an expense of $24 million in the three months ended 31 March 2023. The decrease in taxation was mainly attributable to the recognition of deferred tax assets in Ghana due to higher taxable income, the reversal of over-provisions in Colombia as a result of the settlement of the 2011 income and equity tax claims in the first quarter of 2023 and lower taxation in Australia mainly due to lower deferred tax utilisation of tax losses, movements in provisions and lower capital expenditure. The decrease was partly offset by higher deferred taxation in Brazil mainly due to foreign exchange differences on non-monetary items and the reversal of timing differences in Guinea during the five year tax holiday period ending 31 December 2024.

Total capital expenditure (including equity-accounted joint ventures) increased by $12 million, or five percent, from $234 million in the three months ended 31 March 2022 to $246 million in the three months ended 31 March 2023. The increase was mainly due to a marginal increase in total sustaining capital expenditure (capital expenditure incurred to sustain and maintain existing assets at their current productive capacity in order to achieve constant planned levels of productive output) and an increase in non-sustaining capital expenditure (capital expenditure incurred at new operations and capital expenditure related to “major projects” at existing operations where these projects will materially increase gold production). Capital expenditure on waste stripping at Tropicana (Havana) and Iduapriem (Cut 2) as well as feasibility work in Nevada continued to progress through the first quarter of 2023. At Geita, the underground portal development at Geita Hill East progressed according to plan and mining operations continued to ramp up at the Nyamulilima open pit. In Brazil, the Company continued its investment to comply with TSF-related regulatory requirements.

Total sustaining capital expenditure increased marginally, mainly due to higher expenditure on deferred stripping and exploration costs at Geita and Sunrise Dam, a change in the scope of activities at Obuasi with lower Mineral Reserve development compared to the first quarter of 2022 and additional pre-stripping capital expenditure incurred at Tropicana, partly offset by a reduction in capital expenditure at CdS mainly due to lower investment in the TSF projects in the first quarter of 2023.

Total non-sustaining capital expenditure increased, mainly due to project work in Nevada and TSF construction capital expenditure at Iduapriem, partly offset by lower project capital expenditure at Tropicana.

Cash flows from operating activities decreased by $439 million, or 82 percent, from a net inflow of $533 million in the three months ended 31 March 2022 to a net inflow of $94 million in the three months ended 31 March 2023. The decrease in cash flows from operating activities was mainly due to lower dividends received from joint ventures and lower cash generated from operations, partly offset by lower taxation paid.

Cash generated from operations decreased by $166 million, or 64 percent, from an inflow of $258 million in the three months ended 31 March 2022 to an inflow of $92 million in the three months ended 31 March 2023. The decrease was mainly due to lower revenue from product sales, higher cost of sales (mainly due to higher cash operating costs), higher exploration and evaluation costs and net working capital cash outflows.

Net cash outflow from operating working capital items (movements in working capital) amounted to $151 million in the three months ended 31 March 2023, compared with an outflow of $99 million in the three months ended 31 March 2022, representing a change of $52 million. The increase in net cash outflow from working capital mainly related to gold concentrate inventory build-up in Brazil, outstanding receipts for gold sold in Ghana and timing of creditor payments across the group.

Cash flows from operating activities were also impacted by movements in the lock-up of value added tax (“VAT”) at Geita in Tanzania as well as foreign exchange controls and export duties at Cerro Vanguardia (“CVSA”) in Argentina. In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) decreased by $1 million, or one percent, from $153 million at 31 December 2022 to $152 million

at 31 March 2023, as a result of processing verified VAT claims against corporate tax payments of $18 million and foreign exchange adjustments of $1 million, partly offset by new claims submitted of $18 million. AngloGold Ashanti expects to continue offsetting verified VAT claims against corporate taxes. In Argentina, the net export duty receivables (after discounting provisions) remained unchanged at $9 million at 31 March 2023, compared to the balance at 31 December 2022. In addition, CVSA’s cash balance decreased by $13 million (equivalent), or 11 percent, from $116 million (equivalent) at 31 December 2022 to $103 million (equivalent) at 31 March 2023. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($90 million (equivalent)) and onshore ($12 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of US Dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $90 million (equivalent) (at current exchange rates) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the Argentinean Central Bank approved the payment of $18 million (equivalent) to AngloGold Ashanti (representing only a portion of the amount applied for), based on the applications submitted under this special regime. While the remaining approvals are pending, the cash remains fully available for CVSA’s operational and exploration requirements.

Dividends received from joint ventures decreased by $289 million, or 89 percent, from $326 million in the three months ended 31 March 2022 to $37 million in the three months ended 31 March 2023. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up, at the Kibali joint venture in the DRC. The decrease in dividends received from joint ventures was mainly due to the remittance of large cash balances from the DRC of $326 million during the three months ended 31 March 2022 to clear the pre-existing balance which had grown over the preceding years. During the three months ended 31 March 2023, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $37 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $25 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $12 million). AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC remained unchanged at $40 million at 31 March 2023, compared to 31 December 2022. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During the three months ended 31 March 2023, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $3 million, or three percent, from $86 million at 31 December 2022 to $89 million at 31 March 2023.

Net taxation paid decreased by $16 million, or 31 percent, from $51 million in the three months ended 31 March 2022 to $35 million in the three months ended 31 March 2023. The decrease in net taxation paid was mainly due to lower tax payments in Tanzania and Australia, partly offset by higher tax payments in Colombia.

Cash flows from investing activities amounted to a net outflow of $204 million in the three months ended 31 March 2023, which is $378 million, or 65 percent, lower than a net outflow of $582 million in the three months ended 31 March 2022. The decrease in outflow from investing activities was mainly due to the acquisition of Corvus Gold Inc. (“Corvus”) in the three months ended 31 March 2022 of $363 million, a decrease in other investments and assets acquired of $14 million and an increase in interest received of $12 million, partly offset by higher capital expenditure of $12 million.

Cash flows from financing activities amounted to a net outflow of $166 million in the three months ended 31 March 2023, which is a change of $106 million from a net outflow of $60 million in the three months ended 31 March 2022.

Cash outflows from repayment of borrowings increased by $50 million from nil in the three months ended 31 March 2022 to $50 million in the three months ended 31 March 2023. During the three months ended 31 March 2023, AngloGold Ashanti repaid $50 million on the $65 million 2022 Siguiri RCF.

Finance costs paid increased by $7 million from $17 million in the three months ended 31 March 2022 to $24 million in the three months ended 31 March 2023. The increase was mainly due to higher finance costs paid on the $278 million 2021 Geita RCF and the $65 million 2022 Siguiri RCF as a result of higher interest rates and higher drawdowns .

Other borrowing costs decreased by $1 million from $1 million in the three months ended 31 March 2022 to nil in the three months ended 31 March 2023.

Dividends paid increased by $13 million from $62 million in the three months ended 31 March 2022 to $75 million in the three months ended 31 March 2023. These dividends were paid by our non-wholly owned subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders.

AngloGold Ashanti intends to finance its capital expenditure, capital lease obligations, other purchase obligations, environmental rehabilitation expenditures and debt repayment requirements in 2023 from cash on hand, cash flow from operations, existing credit facilities and, potentially, if deemed appropriate, long-term debt financing and the issuance of equity and equity-linked instruments. As part of the management of liquidity, funding and interest rate risk, the group regularly evaluates market conditions and may enter into transactions, from time to time, to repurchase outstanding debt, pursuant to open market purchases, privately negotiated transactions, tender offers or other means.

Total borrowings (including lease liabilities) decreased by $42 million, or two percent, from $2,166 million at 31 March 2022 to $2,124 million at 31 March 2023. AngloGold Ashanti’s cash and cash equivalents decreased by $296 million, or 27 percent, from $1.106 billion at 31 December 2022 to $810 million at 31 March 2023.

At 31 March 2023, the group had a cash position (cash and cash equivalents) of $810 million, with liquidity comprising the $1.4 billion 2022 multi-currency RCF of which $1.36 billion was undrawn; the $65 million 2022 Siguiri RCF of which $50 million was undrawn; the South African R150 million ($8 million) RMB corporate overnight facility which was undrawn; and the $278 million 2021 Geita RCF of which $123 million was undrawn, taking overall group liquidity to approximately $2.3 billion.

In February 2023, the 2021 Geita RCF was amended to, among other matters, increase its size from $150 million to $278 million and change the reference rate to Term SOFR.

In May 2023, the maturity of the $1.4 billion 2022 multi-currency RCF was extended by one year from 9 June 2027 to 9 June 2028, with the option, upon application, to extend it further by another year.

During the first quarter of 2023, AngloGold Ashanti entered into zero-cost collars for a total of 136,000 ounces of gold for the period February 2023 to December 2023 in order to manage gold price downside risk associated with Cuiabá partly transitioning to gold concentrate sales and the current high cost associated with CdS. During the first quarter of 2023, AngloGold Ashanti recorded a realised gain of $1 million in respect of these gold derivatives. At 31 March 2023, the mark-to-market value of the remaining open positions was an unrealised loss of $4 million.

During July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent crude oil for the period January 2023 to December 2023 that will be cash settled on a monthly basis against the contract price. This comprises approximately 40 percent of the Company’s total anticipated 2023 consumption. The average price achieved on the forward contracts is $89.20 per barrel of Brent crude oil. During the first quarter of 2023, AngloGold Ashanti recorded a realised loss of $2 million in respect of these oil derivatives. At 31 March 2023, the mark-to-market value of the remaining open positions was an unrealised loss of $2 million (at 31 December 2022: $6 million).

Tailings-related regulations introduced in Brazil required AngloGold Ashanti Brazil to conduct a new detailed risk assessment of its portfolio of TSFs by December 2022. The regulations required this new risk assessment be conducted with oversight from external consultants. One of the conclusions of this review was to increase buttressing of the Calcinados TSF to align its post liquefaction factor of safety with the international standards currently considered best practice. AngloGold Ashanti is proceeding with this buttressing programme and has therefore suspended filtered tailings deposition at the TSF, which services the Cuiabá mine complex (composed of the Cuiabá and Lamego mines).

Operational and structural integrity of the Calcinados TSF remains safe and stable, per the conclusions of risk assessments by external consultants and the Company’s internal TSF team. The TSF’s factors of safety, in both a drained and undrained state, are fully compliant with relevant Brazilian operating regulations.

AngloGold Ashanti’s focus is to maintain compliance with the tailings-related regulations in Brazil, including new requirements introduced last year, and to maintain a close and transparent relationship with the relevant authorities.

During the first quarter of 2023 the Company commenced geotechnical work to support the buttressing programme. The timeline for completion of the buttressing is expected to be determined once engineering and geotechnical work has been completed by external consultants.

Processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, and tailings deposition at the Calcinados TSF are expected to resume following completion of additional buttressing of the Calcinados TSF impoundment as well as completion of wastewater treatment upgrades to address levels of regulated constituents, such as arsenic, in discharge water from the Queiroz plant. In the meantime, mining of ore (producing gravimetric gold and gold-in-concentrate) is continuing at the Cuiabá mine complex. The Company has started selling gold concentrate from the Cuiabá mine complex to third parties and the first shipment of such gold concentrate occurred in April 2023. Refining activities at the Queiroz plant, including refining of gravimetric gold from the Cuiabá mine complex, remain unaffected.

The Cuiabá mine complex produced 241,000 ounces of gold in 2022.

The Company recorded a fatality-free first quarter of 2023 alongside its lowest-ever Total Recordable Injury Frequency Rate (“TRIFR”), the broadest measure of workplace safety.

TRIFR improved by 26 percent to 0.88 injuries per million hours worked for the first quarter of 2023, compared to 1.19 injuries per million hours worked in the first quarter of 2022. TRIFR measures workplace safety in terms of the total number of recordable injuries and fatalities that occur per million hours worked.

AngloGold Ashanti’s safety strategy, with specific emphasis on the refreshed Major Hazard Management standard and critical control verifications, continued to be implemented at all the operations, intensifying employees’ focus on safety practices in all workplaces. AngloGold Ashanti continues to address high consequence incidents through the application of its Major Hazard Management process.

Phase 3 of the Obuasi redevelopment project, which relates principally to extended capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress. The Obuasi mine continues on the ramp-up path to its full production run-rate in excess of 400,000 ounces.

Completion of a scoping study on the Havana underground mineralisation has justified the commencement of a pre-feasibility study (“PFS”). The PFS is progressing well with various options being considered to determine the most economical way to access the Havana underground orebody while open-pit mining remains active in the Havana pit. Options include a direct access portal from the pit via a dedicated decline and the development of the “Havana Link” drive connecting the Tropicana underground extension with the Havana underground orebody.

During the first quarter of 2023, AngloGold Ashanti’s project team progressed the feasibility study at North Bullfrog and initiated a concept study of the expanded Silicon project, which includes options for the Merlin deposit.

Following the decision of Colombia’s national environmental agency (“ANLA”) in November 2021 to archive the Company’s environmental licence application related to the Quebradona project, and the confirmation of such decision in April 2022, AngloGold Ashanti has been working to prepare a new Environmental Impact Assessment for the project to submit to ANLA in connection with its environmental licence application. In addition, an optimised feasibility study is currently underway to implement improvements in water management, operational flexibility, maintainability, and constructability.

A feasibility study was completed for the Gramalote gold project, which is a joint venture between AngloGold Ashanti and B2Gold Corp. (“B2Gold”). Both partners determined that the Gramalote project does not meet their investment thresholds for development of the project. The Gramalote project continues to benefit from government support as well as continuing support from local communities. AngloGold Ashanti and B2Gold completed a comprehensive review of the alternatives for the Gramalote project and consider that it would be in the best interest of all stakeholders for a new party to own the project. The partners commenced a joint sales process for the Gramalote project in the fourth quarter of 2022.

During March 2023, Gold Fields and AngloGold Ashanti agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines. Both mines are located near the town of Tarkwa in the country’s Western Region.

Both companies have commenced engagements with senior government officials in Ghana and will continue engaging with the Government of Ghana (“GoG”), relevant regulators and other key stakeholders, with a view to implementing the proposed joint venture as soon as practically possible.

Both companies have agreed to mutual exclusivity during this engagement. Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7 percent, or two-thirds, and AngloGold Ashanti will have an interest of 33.3 percent, or one-third, in the proposed joint venture.

There can be no certainty that the parties will enter into a definitive agreement with respect to the proposed joint venture or about the timing, terms and conditions of any such definitive agreement. Implementation of the proposed joint venture is subject to, among other matters, reaching agreement with the GoG regarding the proposed joint venture, conclusion of confirmatory due diligence and securing all requisite regulatory approvals.

Kibali Goldmines S.A. is continuing to engage in discussions with the DRC Customs Authority and DRC Ministry of Finance regarding the customs claims previously reported. In this regard, on 26 March 2023, the parties agreed to settle one of the DRC Customs Authority claims concerning historic export duties. Discussions to resolve the remaining customs claims are ongoing. A formal reassessment notice has not yet been issued by the DRC Customs Authority with respect to these claims.

On 27 March 2023, Altius Royalty Corporation (“Altius”) initiated arbitration proceedings in Vancouver, B.C., Canada against AngloGold Ashanti North America Inc. (“AGANA”) regarding the geographic scope of a 1.5 percent net smelter returns royalty. Altius asserts the royalty should be broadly interpreted to cover nearly all claims controlled by AGANA in the Beatty, Nevada mining district, including claims related to the Silicon Project as well as claims recently acquired as part of the Corvus Gold Inc. and Coeur Sterling, Inc. acquisitions. AGANA intends to vigorously defend against Altius' claims. Arbitrators have been selected by the parties and it is anticipated that an initial procedural conference will be scheduled in the near future.

On 3 May 2023, a tank in the Carbon-in-Leach (CIL) circuit at Siguiri unexpectedly collapsed and damaged some surrounding infrastructure. No injuries were sustained and the environmental impact was contained to the operational area immediately adjacent to the plant. The cause of the incident is under investigation. Mining continues as normal and ore will be stockpiled in the interim. Loss adjusters have been appointed on behalf of our insurers.

On 12 May 2023, AngloGold Ashanti Limited announced a change in the group’s corporate structure whereby it will be domiciled in the United Kingdom (“UK”) with a primary listing on the New York Stock Exchange (“NYSE”) and secondary listings on the Johannesburg Stock Exchange (“JSE”) and A2X Markets (“A2X”) in South Africa and on the Ghana Stock Exchange (“GhSE”) in Ghana.

A number of inter-conditional steps will be taken to implement the corporate restructuring (collectively, the “Proposed Transaction”), including:

If successfully completed, the Proposed Transaction will result in:

On 12 May 2023, AngloGold Ashanti Limited announced that the Company has requested and received formal approval from the Australian Securities Exchange (“ASX”) to be removed from the official list of ASX pursuant to ASX Listing Rule 17.11 (Delisting). The Company expects that the Delisting will occur on Tuesday, 27 June 2023. The Company’s CHESS Depositary Interests (“CDIs”) are expected to be suspended and cease to trade on the ASX at the close of trade on Friday, 23 June 2023 (being two business days before the Delisting).

On 29 May 2023, the Company announced the appointment of Ms. Diana Sands and Ms. Jinhee Magie as independent non-executive directors of the Company with effect from 1 June 2023. Ms. Sands serves as a member of the Remuneration and Human Resources Committee and Social, Ethics and Sustainability Committee and Ms. Magie serves as a member of the Audit and Risk Committee and Investment Committee.

Mr. Ludwig Eybers will be retiring from his role as Chief Operating Officer of the Company and a member of the Executive Committee on 30 June 2023. From 1 July 2023, Mr. Marcelo Godoy, Chief Technology Officer of the Company and a member of the Executive Committee, will assume the responsibilities of Mr. Eybers as Interim Chief Operating Officer. Mr. Eybers will be retiring from the Company in December 2023 and until such time he will continue to work with Mr. Godoy as the Company concludes a search for his successor.