JOHANNESBURG (miningweekly.com) – Production improvement and holding cost increases at half the inflation rate were achieved by gold mining company AngloGold Ashanti in 2022, when its mineral reserve additions exceeded depletion for the sixth consecutive year.

The mineral reserve increased by 3.5-million ounces pre-depletion with a total of 12.2-million ounces added over the last three years at a cost of $67/oz, highlighting AngloGold’s exploration success.

“We delivered on our production and cost commitments and have begun to regain cost competitiveness versus our peers,” AngloGold CEO Alberto Calderon, a former International Monetary Fund luminary, reported.

AngloGold last year introduced new members to its senior leadership team, and redesigned its operating model, as it progressed its strategy to narrow the cost gap with peers.

The Johannesburg- and New York-listed company has now started an asset optimisation programme while self-funding its successful exploration programmes and developing mining projects in Ghana and Nevada.

Gold production of 2.742-million ounces in the 12 months to December 31 was an 11% improvement, ending the year at the top half of guidance. Guidance for capital expenditure and all-in sustaining costs (AISC) was also met, while total cash costs ended less than 1% above the guidance range amid inflation at multi-decade highs.

The operational result was underpinned by solid performances across most of the portfolio, with the Obuasi gold mine in Ghana easily meeting targeted production of 250 000 oz by hitting the 300 000 oz mark as it continues to ramp up to 400 000-oz-plus, which is expected by the end of 2024.

Cost control was another highlight in a year dominated by the highest inflation rates in more than 40 years. Despite this, total cash costs per ounce increased 6% to $1 024/oz for 2022 compared with $963/oz for 2021. The increase in AISC was limited to only 2% year-on-year to $1 383/ oz in 2022, from $1 355/oz in 2021.

The company’s total recordable injury frequency rate of 1.26 injuries per million hours worked in 2022 improved, and remains considerably better than the average 2021 performance of 2.90 injuries per million hours worked by the members of the International Council on Metals and Minerals. No fatalities were recorded during 2022 at the mines operated by the company, for the second time in its history.

Earnings before interest, taxes, depreciation and amortisation were marginally lower at $1.797-billion in 2022, from $1.801-billion in 2021. Free cash flow of $657-million was recorded, compared with $104-million in 2021. Funding capital expenditure, two property acquisitions in Nevada and paying an interim dividend has left the balance sheet intact with $2.5-billion in liquidity, including cash and cash equivalents of $1.1-billion at year-end, the company stated in a release to Mining Weekly.