AU - Earnings call transcript Q3 2021 | AngloGold Ashanti Limited

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Stewart Bailey

Good afternoon, everyone. Welcome to AngloGold Ashanti's Q3 2021 Results. Thank you very much for making the time today. Alberto and Christine will handle the Lion's share of this presentation. And then I'll be handing over to Alberto for questions afterwards. do of Safe important the forward-looking please the statement information always, statements. end front presentation, as note Harbor the at regarding And which contains that. a you to to ask take I'd look please at moment Alberto. Without any further I'm going over to hand ado, to

Alberto Calderon

Stewart. we do, Thank with I which start will is where you, always safety.

fatalities, continues does rate making What the need we noting injuries prevent below or hazards. site major injury fatalities per implementing member priority ICMM Our knows them. that each heart to the safety is worked, injury It's crucial hours strategy, We're in sites. our This it eliminate frequency especially major focused controls cause person and four average. all on worth to million our revitalized most every eliminating was and on X.XX our mean? also progress That needed from the severity are well decline. accidents which hazards controls which three remained the that to is by to likely the

up business. dose. speaking XX% employees and dose. progress our workforce good Moment strained financial to on host having a Operating improving workforce with Our our continuity. higher the has our also areas business one We're with significant on assistance healthcare sides are ensuring and highlights. about all will a Access of be is operating and safely with in the that About vaccine for feeling at our the remains first vaccination making quarter to pandemic. other and working support, the our received communities governments vaccines COVID-XX plus provide of jurisdictions, received levels least and from in emphasis

trend. which there's operational relative the a done resources, Tropicana, performance a comply review, and to improve Tropicana time with strong the schedule. be business to to higher solid of about clearly due working sustaining track X,XXX with million an sustaining and of liquidity. for in flow, CapEx this consumable ounces from aggressively $X.X started which Brazil just legislation. to side, financial is freight, by while want at we stabilizing, us AGA, free a to and lot clear to will and in has Obuasi cost Mineração be, bigger end the with ounces, mining, of assets generated Gold the and we The the and underground on guidance give remain quarter to fuel, was to remains were $XX good the inflation equipment XX% gold our to you of our well Regulatory in agreement and AGA production at to is mainly about sheet balance by successfully investments make the expenditure. saw lower We Argentina. on the position, new to Revised around Iduapriem license CapEx base because year-on-year year fundamental heavy [ph] call. was remains in capital logistics a billion to competition approved Stan operations under in operating that positive sustaining But more low less underpinned in stay mainly declined Environmental CapEx quarter. able get Nevada. Cumulative and in very At mainly increase to ounce of XXX,XXX was to last the acquire quarter-on-quarter We on current to highly range. the and Corvus All-in conversion the end higher parameters Tier-X addressing pricing lower impacted estimated driven Quebradona, an and Siguiri, track, Gold, a have needs National Moving and Secretary to both we still performance production of is albeit COVID-XX better assets. the start is mining reached improving quarter production and the resumed production Rights where Brazil $XX our an see production while performance potential news. in be particularly steel, in gearing pathway scare labor by and price. lower cash X%, [indiscernible] all-in the for by by we've the completely

conducting every He'll and a an new from now Marcelo two how we our and is Godoy detail focus of optimization. asset the to this And back priorities, to best months, industry on delay to America structure to proposed I'll will cost host do cost our have we end quickly XXXX removing the Latin mine aligned Improving also productivity planning review. the place and critical and of the we from climate is operate basics short proposition, in detailed which My minds but start moving first, business. our operating But most - require and We're must the things to operations then to to by a to change. on first bench. resubmission, it's continue charge of time, term go our strategic asset be right will me each and that offer in safety, to plans leadership, capability an investment one of put Core we conversion. which cash behind will detailed operators Ghana model having working strengthen ensure is detailed imperatives. social the step objective joined it at follow leading- new most license will structure moment. That and current move across bringing back our team in the this our These continuing clear be successful more We to sharpen determining leadership months can between operating plans key host, team cover execution and the strengthen place, a delivered on their plan in our the in making our our narrow but and to best sure makes we need our our and us, project community the medium are updated perhaps and inherent and stretch in the it So we're a the gap is to assets. have together not us crucial we year. are and we're needs, will get have potential. Newmont scrutinizing developing with implementation on response. to have by compelling has the to analysis overall model establishing improved and basics. starts a in in the costs we're and flow to us thing, one XX This and be the in about of and and we government to will most Brazil the He we operations serious that get addition, the this a focused delay. XX respond about appeal confident it fundamental. a our close leading of we CEO With performance this. operations, [indiscernible] teams targets on they with with of change potential per confidence carefully

design special an action specialists support provide the fully the seven supported of and should needed to a vital of the that in accountable, corporate accountability and best that deliver stakeholders the as in value implement needed. and the plant minimum places, is perform at right the to only corporate production resource high should absolute generate the making long-term apply right model this by metrics. and of assets assets To of business, should [ph] who ensure the ensure organizational must structure we effective level, not more right roles view that board for that the the any the I is to temporary their and costs functional the long-term structure. accountability our two success directly are decisions which success. other Ideally, interests as govern and in circumstances multiple depend level solely course providing aim service the by in these and conviction The X,XXX operating to through revenue. asset of many have is be located at organization. layers Unlocking and places, clear possible have a all the mandate My times. close business, in is which at is the a people quality effectiveness to on The where role proposed functions requirements the ensures committee. outcomes This it. two executive All different to improves assets

Moving into the quarterly performance.

a going the and to detail, don't in surface to points. more reinvestment regulations metrics. with on it than through some Here capital, attention ahead and strategy continue financial The TSF operating I push your compliance is we of some let with which of but snapshot in as key intend doubled, me our draw key Brazil.

X to to still of more on targeting benefit bodies. replace Exploration year production at the internal our also also the again, than improving continue than focus depletion to slightly a We Phase probably sharper span without this benefit. meaningful that. was aligned more Obuasi We're up any XX%., also least ore

the and lower cash in flows, impact and production lower of the price. will by which our were see You investment impacted the also costs increased

While two three and to improving challenging the first is months, we trend see quarters. an relative the operation safe did

COVID-XX however, it report time this ounces Africa XX,XXX achieved transitioning to ounces In ounces were ground in for of the we our development XX% be jurisdictions in returning quarter, key steadily gradually and of ounce and complement. retain scale labor operations for grades. sustainable for pre-pandemic mine productivity in A of and as is of Some investment market, below and pressure points to been was return which full lower XX,XXX operational [indiscernible] Brazil of continually will levels. all staffing to not the mining the a XX,XXX exploration improving the production process to Australia, production improve of gold plant the the operations at CapEx levels triggered Brazilian mitigate in $XXX quarter dry-stacking and Kibali higher; before operation some the line flexibility infections we and to significantly the mine our same our is Obuasi, to deadlines, the take confidence, and all-in review are of to which completing the of [Indiscernible] started last an momentum. sufficient performance. same resource year. Still, have declining management last expect for impact we was overview. all remains across decreased foundation in quarter year. period,

XXXX year. X pit further ounces and Block QX for and XXX,XXX ounce good progress three ahead add We expect is ounces later first or increase as We be I'm year. an second Nyankanga of dependent Brazil, last than CapEx in better as are sustaining for the reported was combination we X and at X,XXX facilities. the in up all-in making year of Geita good storage tailings this and Waste of ounces, consequently X,XXX above production of offsite delivery ramp Block And Stripping the however ounces in waste year. to plant. X an ramp we foreseeable below better period processing This where well from quarter up X% stripping a the of open at year-on-year. in open will pretty in development achieved Cut of reflects high-grade contribute in access of be well X. we pit. XX,XXX reflects expect like gold lower with which [Indiscernible] four should the lower All-in expect deposition place it the do the That's a new Siguiri throughput XX,XXX one then for that same higher was XX, XX% we of investment capital the the produced quarter grades sustaining improvements Latin the period and near-term will encouraged That asset quarter probably last American the depleted I open is on ounces in XXXX. hardly Nyamulilima that it's ore hit. will time that's regions mine of is new in Until most in have of between XXX,XXX overview. pit stay years XXX,XXX entirely the been ounces the mine future. quarter a year, and last production Brazil or Geita. operations. we've schedule, so currently to the the and the reserves underground probably for or of

permitted tailing plants back a throughput to keep take scale to to term limits. decision have through We short without low

ounces at on reflects the has which projects now the and were than with we operating been capital this While to for Mineração abnormally AGA production when $X,XXX ounce lower of CapEx unit ounce same Australia's that below grade is restructured Mining from or was track wage not last of equivalent are X% benefit increase higher than year. ounce year-on-year model higher underground stripping Australia. the starting normalize the operating higher costs to was XX,XXX to Sunrise XXX,XXX All-in higher to XX,XXX The with productions prior Shear comparable the grade which as pit period complete. which of the progressing ounces all-in during to increase or We reserve ounces an full to comparable sustaining previous Brazilian COVID open pandemic. put an sustaining of well and all-in managed maintenance higher to period, compared failure the largely the CapEx. sustaining gold team. three which sustaining the an stockpiles. of a ton in and at due we CapEx ounces restrictions year's, year. development pinnacle blended of backing the capital leadership Dam XX,XXX material ounces not we at production and to year. costs which will wall go of a was underground into down Vanguardia differs Delicious hold reported as will $X,XXX largely either. at at pipe quarter travel most At XX% it's down of which the mine hasn't allowing the is which dollar periods. in trade $XXX production this was last Tropicana Western XX,XXX This quarter. COVID last year's XX,XXX to zone Cost In strong in reported pit to an significantly sustaining lifted, to and QX Cerro year QX Sitio Shaker part prior Boston due an underperformance gold Manager fast be mine. All-in the the Gold the This transition full additional highlighted to billion, reporting ores ounces, million year. than be $X,XXX relative Capital Team production in $X,XXX General to the was additional prior at mining at QX, unfavorable team on the the sustaining high grams on organizational is do review period more difficult for and was the to was to position per has new combination ounce and a replaced. been open of Frankie Site are ounces an helped Corrego is operations XX,XXX higher CapEx Argentina, The XX,XXX included is lower was discovered XX,XXX ounce XX pit, in dry-stacking, Leadership capacity. of ounces year. Vanguardia's slip same underway. performance Aussie stockpiled in final unit orebody. Cerro the is production The contributed ounces the $XX production our last by next - achieved review I the XX,XXX other clearly in two to last consequently reconciliation has and are ounces resulted additional All-in ounces production to open Golden the underground to now guess reflects in will quarter price prior CapEx compared in compared related senior contributed year. price capital, This XX,XXX the CapEx gold expected year. a production return added

ongoing QX, see to mines up productivities production. improve the expect performance in we operational our our ramp ahead, Looking and improvements as in

developed to in XXXX, redevelopment expect that Tropicana, the be aware of to also Shaker. the be will We the to Boston KRS Obuasi of mine full project, mining in X been of and in Phase a and three see sampling in material enabling tons redevelopment improvements Refurbishing project and rate you X,XXX not see is constraint shaft Obuasi to is complete. expect per day. X phases. completed be have the we benefits system

wants Focus the the KRS move plant done So as pumping the water and shaft material X, on XX handling the and up infrastructure the XXXX stations including Phase enters KMS is end is the associated mine refurbishments Phase deeper on to BSVS and and management GCVS and shaft. below areas blocks ground now ventilation system shaft and new the sub-shaft which shaft, required north of and XX. which the to KMS up facility. process as sets underway. procurements serve production ventilation upgrade are includes the X is of the the mining into new Setup engineering and infrastructure

production We have expect I two first the project to just team phases from the project. with work and maintained just say the relatively the for earlier handing would June with good the that continuity to Ghana phases, per before X,XXX he day to support the XXXX. tons to In on Graham, the contractors reach said we I track by are XXX,XXX over will ounces enhance of

I'll discuss update on to of that, X. resumption hand the an to and Graham with phase So over mining

Graham Ehm

operating of This been had up, Obuasi Thank plan the navigated existing the ramp comprehensive XXth to project the on was and disruption which supplement quite you suite probe line the about and in pandemic protocols monitoring view independent resources. following previously areas. internal loss introduced ground mining introduced a laser the about add review May, with public full position had per to the challenges. series resulted These of had failure which or visual operating consultants. been to the resume A systemic mid-October. including costs team systems estimated the [ph] to ahead method inspections of sill use colleagues. protocols conducted into cavity not will existing activities one being following Alberto. reserves mineral A and by of procedures or tragic have in and was the and an the technology at integrated lines extensive of mining of and Australian well $XX $XX $XX in Underground mining procedures global pillar ton mining systems are now management backfill The procedure, confirm system. materially supported water by reasonably operating of the cavity drilling line the to that cross-functional status supplementary detailed third-party the include lined suspended mining does the tracking Underground It's been ounce. the otherwise our of of change plan, a voluntarily the or This procedures. operating front

Our be costs sustaining and $XXX,XXX year, $XXX,XXX to with line ramps XXXX, an that per about all-in estimated production up to around of the per for per around cash ounce is ounces costs as annum to in ounce. $XXX,XXX X,XXX X,XXX

At tons point, around undertake will of to X,XXX in rate remain mentioned, X,XXX four $XXX the X at up As three day. next in until to all-in year. project anticipated is the the rate ounces achieving a around Alberto. the we around the that plan annualized middle the by XXX,XXX around the all next that level step fourth a annual the of $XXX production the XXX,XXX in that production XXXX the Thanks, With complete, year. first be Phase per XXXX is tons rate the estimate mining costs Alberto day XXX,XXX quarter ounce. we year the We will will in estimate And XXXX. half quarter of completed an XXXX, from at that ounces to year, of expect ramp-up of XXX,XXX an sustaining every to production to phases to of

Christine Ramon

now I'll Graham. financials. Thanks, the discuss

Iduapriem, the Our Geita across phase Brazil cost at as tailing key reflects compliance portfolio Alberto significant and a Tropicana in mentioned and costs. also particular performance our reinvestment assets

Tropicana payments, remains cost due underpinned an to Our which $XXX or Cash $XXX about ounce, an most inflationary discipline. recording Underground pit to Sunrise operations against by lower golden Kibali. grades Siguiri were XX% product at in CVSA weaker process Recovered that reflecting except higher improving prior operational grades and Siguiri. This mitigated have grades except capital are bar with was X% operations increase currencies. all XX% our except recovered a and for X% Recovered open on year-on-year, XX% lower be improved stockpile will were Dam. with and lower underground all lower the operations and however Geita, efficiencies, improved for from was local quarter largely movements grades, as and by increased a for focus pressure. and ounce sales, grades, performance, year-on-year, lower Stockpile operations, noted at by drawdowns grade and Geita, Obuasi costs increase. Iduapriem, royalty XX% partly and

capital back X%, compared XXXX. an improve cash and to mainly costs stripping and We quarter costs improved as well to and sustaining to expenditure the higher sustaining expenditure reserves. by on at All-in quarter, flexibility, increased to quarter higher cash planned XX% capital or as ounce production from higher was Iduapriem. continued producing that Tropicana for million operating assets capital that and the an And and costs of orebody and So at mining compared third saw higher activities costs. ounce Brazil $XXX the tailings was by $X,XXX of $XXX the the to to total mainly XX% confidence, compliance due previous due lower and the was

ounce an COVID-XX, an an due quarter in costs relating to an the estimated and tailings XXXX sustaining program. ounce impact to Brazil $XX included $XX compliance third to Moving impact the of estimated

to is the at additional and impact ounces. production related includes estimated to XX,XXX ounce the ounce related $XX an $XX year-to-date, ounce of the estimated loss that an For costs an and COVID $XX

of oil the some year-to-date X% bulk was is around inflation higher pricing jurisdictions case higher Brazil that crude close driven resources, by Australia. labor the a the freight price, watch We group, equipment the current are particularly for estimated heavy in consumable logistics inflation. and passing, for for on level competition predominantly and at and including steel costs, Brazil and Cumulative and keeping key

the We training succession programs the strengthening of graduate are and and focusing for planning. necessary on retention critical skills

continue to global also spin proactively have any categories We our and continuity monitor resilience shortfalls a benefited to during at and to three. of chains partnerships supply our experienced and negative quarter stocking material global not strategies delayed we did impacts impact. Due from strategic supply supply maintain of as well inflation as operations,

However, increases quarter third we've anticipate increasingly and XXXX. XXXX remainder the continued of pressure seen the cost in into XXXX and of throughout

[indiscernible] We excellence contracts will and long cost consumable our to mitigate pressures. these use operational program range

Moving robust committed disciplines, continues maintaining Nifty the adjusted of long-term remain capital approach. XX% strategy Adjusted the We on time down sheet enforce balance cycle. net ratio or improvements an to to a based and balance on sheets, from to EBITDA to a one the at sheet self-funded adjusted sheet balance through allocation, peak. $XXX balance our million with debts target

the cost acquisition from multi-currency the Corbis cash transaction be is anticipated funded largely billion will of well cash Liquidity our balance unroll. hand. XXXX, mainly $XXX balances a and $X.X to continues From The was which is the RCF flexibility. by below targets. We liquidity ratio on strong their Our is excluding cash close Kibali of of provide during billion to currently times have supported current cash and share available good X.XX remains QX perspective, million. of $X.X

to proceeds On priced million successfully interest the XXX October, a new tender any million, remaining This the from at notes low no translates into There a $XXX used other notes. bond The seven XXXX are due around X.XXX% the the XXnd cash term an we new per through saving of by raised in coupon a of of million bonds significant year $XX of of redemption will followed maturities. record annum. near repurchase X.XXX%. be offer

We paid generated Free XX% $X.XX declared in remains first in free cash of flow. based semi-annually. The the of cash capital Our on dividend XXXX dividend is which year. formula the of policy paid of end be the August unchanged, financial and free final interim year. an flow based will financial half per the at growth dividend share

million Geita Our impacted $XXX at put The a credits effects tax recoverable flow to and July offsets administrative by by Tanzania, in In cash process. the $X the be despite at is September. Kibali in X CBS. accumulated and against increased export free lag lockups although for continued duties is offsets and an vaccine XXXX to VAT the payments million corporate expected expected continue, since there million,

Barrick mechanism is available Tanzanian We [Technical the historical and engage for that operational requirements. regarding relevant on the account the historical our the until XXXX, which authorities continue Bank million. on dividend. in We've held with be is JV fully approve the September and amount to of partner as to cash amount of June DRC, equivalent the a be which $XXX the million million dollars, recovery and to applications Kibali VAT $XXX receivables million. Argentinean CVSA accumulated million operator remain was the XXth export the eligible of had paid. $XXX to $XX Argentina, Kibali the of to declared In bank JV's US continues cash in a duty $XX Central balance in to XXth to at XXXX submitted of this Difficulty]

Moody's of below an X.X for maintained with for remains a and revised a rating notch company the one quarter. ounces aspect million bottom Concluding grade. S&P range end outlook. the production rating the XXXX, unchanged Both ratings August negative guidance such million Fitch the and sending guidance the business investment guidance maintain to and stable of Finally towards the our a our Moody's on on issued revised credit during in in for grade ounces. of X.XX tracking track. We're remained

with prior expected quarter QX As and results. to improvements at the expected Australia years, production our peak Iduapriem, Siguiri in is be

any Other $X,XXX operating million We relating testing guidance will assume ounce production mine cash of guidance pandemic. to to an and Obuasi, stockpiles for XXXX ounce Guidance underground now only expenses multi-million finished towards Siguiri after used second are range to an between of be revised dollars excludes costs does The the mining the ore revised is XXXX. costs $XX not top $X,XXX is the for in negative also XXXX. impact production any recommencing half of mid-October $XX costs to maintenance The to includes is an respectively. an end million and ounce AISC. $XX on COVID run $XX the ore ounce be Obuasi of some the both underground total for the contribution and

the day ramp-up full tracking within let's of XXXX. or expenditure Obuasi half by of say $X.XXX We range to is the a X,XXX million Capital million. the guided mining rate end first X,XXX tons $X.XXX expect of to the of to

For of year, growth key we our program brownfield across portfolio. reinvestment as will the the driven continue pursue projects we the remainder

ended September in was Our spin spend growth production Quebradona. to QX months project Geita, for sustaining year. from ounce Gramalote capital. then two relates will mid-XXXX. rate the an four to line in $XXX by and projects $XXX be classified Reserve capital Tropicana, capital Obuasi phase, as which to two with capital Colombian our $XXX stage On for commercial expenditure and labels estimated nine continue Siguiri ounce, Obuasi, of the XXth was achieved the an Growth development

legal in leading Obuasi overall are the taking the of facilities. increased currently than tailings by employee our including despite conversion business spread which the rates. complete amidst to the planned reclassification tailings advance COVID-XX dry operations of an turnover to the pressures and resources, Key place risks In So has program the the of existing COVID converted continued competition normal being XX capital This the unchanged. and skills is facilities engineering to pandemic higher deadline. for to the remains investment decommissioning increase capital resulted Brazil, stacking in and facing inflationary

we that significantly while time. current XXXX annual Our implement XXXX and of based capital work estimates required to XXXX this that years, on for over million. material we expenditures XXXX, expect for will these anticipate will expenditures this indicate preliminary each the $XXX in less decline than be And exceed today, but to during capital would estimates continue new not technology to in

Alberto conclude. to to Thank I'll that, with you. So over hand now

Alberto Calderon

Christine. you, Thank

So self the people sheet. to portfolio, high a why great excellent looking project of are generated forward, quality Ashanti, foundation make AngloGold long-term asset a critical and Those have so the pipeline, company. balance we success a blocks

not it? unlock. do get basics. we to our have latent to we there We significant potential value is unlock to full However, are back How realizing potential,

have level. mining supports to get in people strengthen the to will ensure strategy. the right model, and ensuring at organized our We have way we're work every which wherever teams values of structured review business The right operating our roles optimally continue and in a necessary, to right. the we We'll execute our

asset fundamental and program that assessing gap increasing in full the of costs. have productivity the potential regaining be are in significantly or Our will we reducing lost words other asset competitiveness

back the we at ESG, in will believe We our which valuation leadership its more than top particularly have it that, taking time to companies, to you. the entrench the a questions. same than the and Ashanti climate emissions to in where and continue necessary a AngloGold open will is journey firmly I belongs. place I With to sphere, Thank process are among its half our to where is we decade. more mining over gold the undertaking begin little

Operator

would Bailey time, Instructions] back much [Operator we like for you, Mr. to Thank questions. it At Thank this you. to very over hand sir.

Q –Unidentified Analyst

[indiscernible] are has you could XXXX? Serra sustainable [indiscernible] through one webcast, And instance in the first Alberto Grande been first into at is trend main and And driver, from the take pressures inflationary the this and these the us and from what is the

Alberto Calderon

been about in CapEx, it our far terms Brazil and of in on you spending by $XXX put to has if of million around it's is impacts been But pressure due the pressures. products, production of main issue the on Brazil, tailings has ounce. $XXX inflation the primary labor Local X% COVID an

hits that So us hard. very

expensive had we yes, and thing have big that the the of in and into are PSF. seen. we've not And mines So been mine creating but a capital we've operational faced locked significant corners worst had flexibility. the a we constrained in of which that A that has the that's amount been low plants your difficulties have to constraint where the have where the to and be, want assets is Brazil you issue inflation lot biggest we've themselves many is also we in to are, is which the most very in influence reinvest the be grades complicated, has part and ways mine that

Q –Unidentified Analyst

Thanks, Alberto.

improved Secondly, have this maintained be trajectory to expect year? by grades recovered Siguiri we Can at XX%. into next

Alberto Calderon

the much in in of reason said that an all productive is know, actually you has grade. leads grade higher higher as this grade, ago, for Look, that And it's main from a increase that more the been to and as dropped to, oxide. probably XX% we months

there in So labor need XXXX. to productivity. to we also significant the of continue improve the things Nevertheless, improve, plan. to we We yes, improve need to productivity that expect are

not Block of high a lot performing. costs there's graded. to things, too really But our are acceptable with X happy are the we not are - or - So is

Q –Unidentified Analyst

operations the common Siguiri, is exception case? Why peers? issue, trend the and has And of the a with into grades. which of common across Kibali there is Is softening to all been come this also

Alberto Calderon

interesting. And good question. that's a No, is this

to found lower wanted, when that grades a grade our see you we XXX, about cases consequence, a lower an this and can that that about you have were use it's and our and is lower and decision that stockpiles. plan not not $XXX quarter were increased in cash the it's inventory grade we we not we Actually, a to lower the to use stockpile, If meet is is have able most able meet say is we quarter a plans it's that the so ounce plans. we that not versus grades from we $XX costs

an any you and beginning from in were example, had have when the we that. away didn't your of of issues of of lot those flexibility catch take up the that. and lack small, the Tropicana, far a operational that you're means clearly And we and catch we we have plane The really the So a COVID you whole all the the is small in plan, Havana, with you're and people problem mode, and then Brazil had affected fact that example mine up, issues. and in 'XX. and of problems for optimal have with

and in were that we also to Nyamulilima. then grades just - have plans. Sunrise, the and you then our leads in stripping, we that the lower then we were case And were had in way in you transition So you in behind had reinvesting, West to transition Rock were you

all I lower put that - temporary in So grades. of were would

grades So those. we to of expect see in better some

see And them would expect grades. that this we we the able are to Tropicana, full better example, and Premium grading flexibility, to we to as we're In better we are constrained we our of also not that assess for mines, have XXXX. in And we more [ph] in say our we assets. and of would able to that potential So are better expect let's potential, see ensure that's a should XX we assessment, most of ensure in mine job able months. part performance XX full in and

Q –Unidentified Analyst

its cetera? in we And think what country? and Guinea the Alberto. Thanks, coup diversification, in recent aluminum, the then bauxite, are any is significance - lastly from and likely AngloGold pursue And heaven to et future does on I have

Alberto Calderon

foreign is really, of want work that government they with all read the No, new to you the communications investment. if by

mines We that way government, feedback as with that I administer including have all work we on ground is the us. out been received of certainly to have we levels operations. of of think gone have And speak of to the that actually encouraging. that they've ensure the felt different speaking the continuity have the delegations to their of used we the

will keep we do. what at we So

gold at are not certainly miners, much if some -- more We anything maybe this stage. comparable

Q –Unidentified Analyst

David of duplication Ammad from couple of one on topic Asset similar here. examples for so Global of what a Thanks, can the Houghton Could Management of Alberto. we Oasis Mining is from Research Then some goals. the us part. are first a here questions and the scale Hakim Effectively and execution elimination savings the understand and is give you issue potential your time of

Alberto Calderon

meet, talk lack that be more the the can most end of about? of we but above the to were spoken sort of in Look how our to several old with of that a of around they model part of It's of numbers. functions, strange. model, and this it are issue is them that February operations. functions interact you that And entails. of more When operating in people I the effectiveness should type line would bit by is operators them, that more all of had you model the the And next when talking by we give year. is we we What by finished the

empowered, will where those the may into a strengthen. And Tanzania is line we have it take was the people So once really the And were in lot report of Officers we should of center. functions their corporate you confusion. Operating had mean, example, go day-to-day is those to I for trying trying structures they you operations many about had lot will each the assets XXX Head all of that which a the now to they run say, to people, help the from is were had two good reports start combined and same time have functions, destruction of all Chief But the sit, then will in to And what and at functions. their were that they assets by you lot a there but be. then

So it's CEO, me the really or have clear. told then five four clarified bosses, he are have be I bosses, don't and I of will the know five like doesn't one one sometimes compatibilities the GMs so it

More importantly, we sitting levels model, have in the at old functional organization. of four the

another then and it's What America, had another for Colombia had you the you have went international of to places. HR our you So one, have Latin HR, at Head you example, you only the Corporate, in HR HR. you Head Head of of had CLO at now and at two

supply Unit, example. then again a to person, he of master put big So just people technical things. Michael, contract will the are and we to supply for governance in anything for to, will Australia have so And supply so do and going at going Finance to and you HR the they data, there Business can have deliver maybe well, And in everything to two you for to in example reporting to have It's want And have him have take will organization. that for supplied corporate, the person. go scale. really levels have we Colombia he VP the there of and other and methodology we're as only we're see excellence, the person, to in one Corporate system at day-to-day, a only

the decided of So by - the buy, how when what the with will they contracts But bulk the buy they most be is the asset. negotiated big buy, few center. they

deliver day-to-day I will So to repeat Australia be will also they And the be results. deliver results. accountable business to day-to-day unit held empowered

Q –Unidentified Analyst

you questions through are Quebradona explain on happened second Could could us you what rates the just delay and what with just that talk at burn Colombia. at Two Alberto. there the moment? Thanks, cash

Alberto Calderon

said they which happened got we landowners level, because state given good we need by reject we opposition of Basically, got news, got it. What more there but national didn't They a was some a some the just delay. At approval wasn't is the information. was over the there. we

but addressable, process certain about all the XX to by all will uncertainties months. have situation. delay that is and sort We of no we And it a can are XX comfortable they're showstoppers, of there address technical the we

One of going to reasons is there's government. a change in because be the

in seven So right I months. think really now, that this do will change agency don't will much government more the

was had So at the we we're did to thing we to we into delay. What withstand resize to that the probably did the XX to be first resize it weeks that do is delay. estimating XX Colombia was able and

about $X that. And it Colombia around by about per like so we the to would burn or reduced in have something to rate XX%, and XX% year million brought

have we done. what that's So

Q –Unidentified Analyst

the the Thanks, repayments says Barrick in AngloGold agreement recently $X.X mean Alberto. funds for current Adrian within billion DRC He principle The shareholder split? alluded loan. does to with relative and What regarding does current this of cash Kibali Hammond flows an about in what form the it monies country of XX:XX and future Bank. question of mean next from to for share held of Standard the from dividends repatriation from

Alberto Calderon

what will the I let's means see my ventures distributed past. crossing this XX% repayment. we a now. basis we touch the Barrick country is repatriate we there have and in am I what they're time that on What as is weekly fingers, XX% think And joint profit, with in we’re say is that loan remaining of announced

we share that XX% $XXX with our that locked is that up. and the million have XXX, So

As will you an be loan two in agreement, more out an mentioned, once [Bristol] to forms to repayment. we get that And able dividend is on where alluded million in has repayment. $XXX agreement reached

instance in are into the trend webcast, is through the one you the has and retaliation main last from first could of share and an be before Alberto from to with So when the these is is the we exception [indiscernible] take would be driver, sustainable more at possible mechanism inflationary able we first Grande said the will will we us approved. permanent this been XXXX? what as mining light A code. pressures solution [Indiscernible] Serra and and

Alberto Calderon

inflation an been if on $XXX COVID main Local Brazil of labor has in issue far been the in million $XXX tailings terms by ounce. pressures. it you about and X% the the of is it's products, But spending production has to our pressure impacts CapEx, Brazil, primary put on due of around

hits us hard. that very So

and where we've you which low in grades we Brazil is A inflation have worst is creating yes, we been which had been significant has influence operational have part big has constraint And that and we that most mine of themselves a reinvest of mines expensive to that flexibility. difficulties mine the to lot the in PSF. constrained but to a So amount seen. also that's biggest want be assets in plants issue complicated, locked are the we've into ways and and the be, not we've faced have the that where the capital corners had your thing many is are, the very in the

Stewart Bailey

Thanks, Alberto.

maintained at year? we be into Secondly, improved Siguiri recovered XX%. have Can next expect trajectory by this grades to

Alberto Calderon

all grade, an higher higher the that The reason in is grade XX% know, to probably to, grade. dropped And more productive a much as said that that we in ago, for increase has and oxide. as of you months from leads this main been it's actually

in Nevertheless, labor improve to plan. XXXX. So things expect to yes, significant of need need we continue to productivity also productivity. are to improve the improve, the that We we there

things So are not really costs not our there's to of or a graded. -- we X is with too But lot Block the are are -- acceptable happy performing. high

Stewart Bailey

with to Siguiri, also is peers? Across is the Is has into Kibali the the of all softening Why come of been case? a and operations trend which there exception grades. common issue, common this

Alberto Calderon

And interesting. is a question. good this that's No,

quarter consequence, not were grades ounce lower can is XXX, we we use we the the in we plans were quarter If so a an stockpiles. not have able to that see lower plan about that and that that and not you inventory we versus stockpile, not that it's costs $XX plans. $XXX and our wanted, we grade a grade decision you is it's say increased when meet found we able that to Actually, and is to most have it's lower grades a the about our lower from use a this cases is meet cash

we in Tropicana, your we from and and far Havana, were had for any the and a optimal of those whole flexibility plane have really beginning take that mine So all lack of you're And issues. we plan. problem people in you 'XX. that. example, the and the in problems of with catch Brazil have up of that. fact away The example is clearly we lot didn't a had And that and of small, you're the an have affected then up, catch when with COVID operational and means small mode, the you the issues

we then then the reinvesting, just West were in were Rock that and Sunrise, you that behind also transition our case were had and in we then leads And were you in we plans. in transition you have way grades Nyamulilima. So to lower the had you in stripping, to

all in -- of grades. I temporary lower put would were that So

We see some to those. grades in of better expect

grading So Tropicana, in we would expect them XXXX. better

are flexibility, and we potential months. would in we're to mine see this that that full we to mines, are and that most also we XX expect full should ensure the assess a constrained that's to let's as assets. able part example, of and our of not job better our XX of we better are see ensure we performance have assessment, For able we And grades. in to we more potential, And able in say

Stewart Bailey

lastly the likely Guinea and country? recent on significance bauxite, then and pursue cetera? heaven And from to I coup does And have the future are any its what Alberto. et in Thanks, think diversification, in aluminum, -- is we AngloGold

Alberto Calderon

of the you if by new the communications all with they government foreign read want really, No, work is that investment. to

certainly I we levels the the have keep have is the different the think of speak they've felt ground mines to that on that as operations. We work feedback the so will have gone have continuity us. do. of what including delegations speaking way we of out government, with actually to we of And ensure used administer at of that we been we the to that received all encouraging, their

stage. much at this more not comparable We are certainly anything if gold maybe miners, some --

Stewart Bailey

Alberto. Asset of questions from Houghton issue Oasis savings Thanks, on the Ammad potential give a some from are David the Could similar so of you Then goals. Global duplication couple Effectively us time execution understand here. is of a can scale part. one Hakim here and what Management Mining Research elimination examples your topic we the of and of first for and the is

Alberto Calderon

they how of more more about? to are type the is next February of it entails. finished above operations. them, you And of by And It's old by effectiveness would we functions can when in end give with strange. model bit of in were several this the functions numbers, we the should is to operating but lack meet, issue I the that had the of of what that that model year. operators be them more of of around spoken of interact our the that line you people by and we Look When most talk that the is all sort model, we talking part a

the about had there all two the to people their XXX good of day-to-day lot in they Officers then trying assets we many they structures a assets empowered, Head now we a people, will go their you to which center. you were So run And the at but from of will that were by really what combined I and for have was corporate is functions, the were should of report is mean, functions. of then it once lot confusion. had the have you a functions But time destruction is to where start those and those sit, all example, help will say, the Chief strengthen. had they take to trying line be. operations And Operating lot in may same into the reports And that each Tanzania

he the the it's told will like five So clear. bosses, of doesn't the really then clarified bosses, CEO, know or and me be are don't GMs have so I one sometimes four it I compatibilities have five one

of old we the model, four sitting at the in organization. have functional importantly, More levels

places. only then two the another had another have of America, HR What HR and you went have of Head CLO Corporate, you to now Colombia it's you of Latin Head our example, for So you HR, you one, international had and at HR. in at you Head had the at

will that have at we're just can we're so to people supply we going to excellence, and in example. other to things. he person, in a the only reporting in have person. to are have they And well, levels Business Finance and have of to governance really put you at going methodology as do Michael, scale. the anything day-to-day, system see will for So he there the And to in technical supply two want It's then Unit, him for data, example organization. Australia will and to, you and corporate, only supply the go HR have for of we to VP take contract everything again And there and master Colombia supplied so big Corporate person, the one for maybe deliver a have

buy, how contracts asset. But -- by be when with of big the few the the they the negotiated bulk buy they buy, the they center. what So decided will most is

So I day-to-day also be results. day-to-day to held unit business deliver will the And deliver will accountable Australia they repeat empowered to be results.

Stewart Bailey

through Colombia. at Thanks, are Two what and at second just on Quebradona cash us talk there Alberto. you that explain rates you delay questions the could moment? happened burn what with Could just the

Alberto Calderon

approval a just They it. Basically, was state got a the news, got didn't level, What which happened of some is we the reject landowners some we they the there. we over delay. but because we good by national got wasn't need there given more said At opposition was information.

a situation. there addressable, uncertainties We of the are that sort will we certain we showstoppers, comfortable process delay they're address XX the have XX by and months. is about all technical of but And can no all to it

because going of One is reasons the to government. change in a there's be

that more government So much right will do agency in this the will think change I really now, seven don't months.

XX be to it resize withstand to was into the to do XX we probably resize Colombia what delay. at had So was delay, weeks that the is to we're estimating did able did we that thing and the first we

rate to to in Colombia about or XX%, have like brought by year it reduced million that. burn around would we something about so the XX% And $X and per

what that's have. So we

Stewart Bailey

Kibali says Thanks, DRC the with Alberto. repatriation held loan. for Standard repayments from of The relative monies an of share of in He $X.X to Bank. regarding it from the Adrian of shareholder What this does to funds the recently current cash and flows alluded current next Barrick the agreement split? XX:XX Hammond country question does principle from and in dividends within form what mean for mean future about AngloGold billion

Alberto Calderon

on XX% repatriate is ventures profit, in means weekly my What in have past. time touch country announced see crossing am we now. And this say think there is will what of I and joint repayment. that distributed a I as with is let's fingers, they're we we basis the that what Barrick XX% remaining the we’re loan

So that up. XXX, million we with XX% share is that the locked that have and our $XXX

agreement repayment. you where to loan in dividend more that in an forms mentioned, And two an once will As [Bristol] we be reached is able repayment. million on to has agreement, get out $XXX alluded

able So permanent possible as mechanism retaliation will mining exception before is be we we an would we when be A solution more code. light approved. of will last share to said with the

Stewart Bailey

distributed Adrian, or to all And then again patient Alberto. Thanks, XX% billion policy? comes out only you once this shareholders dividend that from would $X.X as per

Alberto Calderon

the me dividend I stage. I it be will let On this think addition policy $XXX significant excitement -- that. stage, any to but need wait this that be million -- approved, will is But more. that to that change XX% at wouldn't see

be that good. So will

Stewart Bailey

Alberto. right. Thanks, All Excellent.

go and a -- we if line. are could operator the See, Just on to the few questions there line. over

Operator

very you Thank much.

Hoover Jared The first one Morgan from comes RMB Stanley

Jared Hoover

side, Thanks got please. few hi. Yes, from team. I've my for a Alberto call. and the questions

February is be what into stocking perspective how outlook year? be inflation an is easier was obviously, few So pretty you quarter give earlier start from per current in to much on guess XXXX? over color There strategies. I'm my with we should as I'll there And would more upside about that some the X% to into first I on pressure whether looks could maybe So inflation. there'll with or cost basis? was hand get your I'll that about double-digit question commentary an updated think from , from trying pressures cost I more. up going absolute come notwithstanding I been that that that the like much a to And and $X just an pressures I cash fact seems to inflationary us next it ton you've ones. $XXX it But thinking could buffeted your was hoping some of ounce one of the forward, follow tracking fourth to because And cost and to be year-to-date of level and that guidance really, wanted on business OpEx from clarify, cost it actually XXXX? then into $XXX the on inflation,

Alberto Calderon

in X% think we're how we going really we inflation. better in There's But to And the what to that, uncertainties. that's anybody believe which be to and I to for if supply somewhat that What significant. higher. improve. we are bottlenecks of assuming have then who X%. nature's help don't try I seen up-to-date Okay. else, than assuming stage, a I have temper years we any this similar the gut, that. lot our all of have with it'll my probably if don't budgets and information the probably X% At are know to We compensate is evidence, don't start bottlenecks this you

not anything this stage, than more at for X%. So we're planning that

Jared Hoover

staying And Okay, the then on thanks, theme. just Alberto. inflation cost

touched we've think if your are I and and I project on that, of being business, new XX% anywhere low. talking on think OpEx. XXXX think alluded I CapEx mean, in XX% too to inflation, your you've XXXX and a peers between of I CapEx But bit terms about to some is

So Then pressures given potentially there upside throw the and in project to the future be inflationary in items. you is your CapEx. that business you some recapitalizing

the on coming that really to CapEx trying get I'm much So, more outlook, feel to current fact top a for in TSF, have how to you'll and is the XX. of there CapEx upside XX your Brazilian between

on comments useful, projects CapEx and new please. project be any So quite would

Alberto Calderon

but look you which at about total million $XXX going million growth then of it's roughly, the the increase, capital $XXX other in Tropicana, about $XXX million Brazil, in Geita, to there is etc. If Obuasi, in and out Brazil, between XXXX XXXX, be

should back to but But if number. the levels XXXX, in improve a of So more go you XXX. it's to where operational a flexibility, be -- -- of especially it's you lot said forecast, the There constraint able be look it to be the need to XXXX, probably so was reasonable cannot middle. going be not don't increase, we much But somewhere in was is going I at like we what to we to a going it's be needed. won't massive go is my putting not to we any it mind I've longer.

steady in state. much case look one, are at these how of because are if companies than will different inflation, some our big you Now, the

is having. inflation, $XXX reach And it's an so it's inflation million the dwarfing when you and hitting not us, steady not you, it's we're inflation not any is hitting state that

yes, -- big -- very So next I be is this from the and be really year going amount reduce we years. to that able as to are that said it should high this

spite inflation, in able to we any be so produce. should And of

Jared Hoover

as I've then the model or appreciate Okay, thanks, well. that operating more Alberto. one I on questions And two got And the…

Alberto Calderon

last too. others Maybe have if you to we have questions question, because need one

think but time. and question return one then last have just we if -- make we a I

Jared Hoover

Sure.

I CDS on February. So numbers just give chat in was operating in mean, made you've you changing Brazil. in to some I the alluded just you've qualitative it's I team to the could appreciate hoping us probably and I But that you the model. that changes of know date. some quantitative to nature, that

just is CEO some you will your of Godoy could but think of you've within with? at made you disclosing promotions one and the moment, some for it be currently I'll maybe that and business, that there chapters I highest is Marcelo maybe maybe you if now. there review leave why the busy made the technical

Alberto Calderon

we from in prefer we'll in not more to out And did talk don't but perspective we to of and that need – talk will a more Look about, from structure put about have probably sort February of legal a we couple announce presentation. it's I just full legal's -- the others the any weeks, want processes I in the finish? so of why would jeopardize in structure -- that that to we

one very clear, newer it's one CFO, So CTO, Chief CDO COO, Development is Officer. it one one probably

all that's new We're a into not we that a top was person Graham at bringing leaving Argentina the team. American is has will can Also mentioned person And later, our we'll be the moving also premium Argentina secret in teach end the I done one Brazil. the person. going Tanzania both Ehm solidifying talked position, think this very in and expo, also South experienced be we finance presentation. you to will in bringing has about from There top that We're a hires the America, have also Obuasi. then, a I at on so Latin and operators new whole leader then tell So Colombia. But was retiring be that our the probably SVP year. the of I been people bit. we're will The now just as of so person I at Mike, an that can job HR looking that Obuasi, who excellent and you Head, into of

in we Marcelo again, planning, development, was have And optimization, what so at in enormous Newmont, the that needed. exactly in he's in working CTO lately and exploration. Godoy. resource mine He bring is we resume to Really experience it's project and

retire are things. we fellow. And She happy unfortunately, back and head in other move actually HR to with very as to also has So wanted fully my Boards but Italia, come a role, then wasn't consultant. the she had and

years for in back into recruited we has And to chemist Lisa biochemist XX a HR she in a career been is Newcrest. was by leading and CEO HR training XX while, went BP, the Ali, so

now. the an think, I that's, So interesting strengthening team right of

So that's much as probably, as I now. probably share can right

Operator

comes you. O'Kane Dominic next question The Thank of JPMorgan. from

Dominic O'Kane

Hello, thanks question. the for taking

slightly two interrelated questions. Just

for road the an interdependent XX at the to years down do naturally For Gramalote Quebradona months around approval February. longer-term sort the of in updating provided Gramalote. during So does the reliable push still delay terms think you've so you I've going And Quebradona the given approvals? least that year then it as regards review recognize project portfolio in beyond et far you was earlier guidance the that that, for year. But and two production outlook model four-year CapEx, done Columbia, XX of for the your is Do cetera? comments the of costs that operating by

Alberto Calderon

So thank you.

view. is JV, understand answer that to question don't not reasons different no. the are we completely are not but we operate my are Gramalote They We interrelated. for used I be, some the So is than fully They don't anymore. to it. first

thresholds. this improve we're more so so our re-optimize right the meet to And optimize, now spending the is didn't as was There it the million $X.X and that project of economics. $XX million our part JV

a If earlier, go at goal And it's the take it. not of then run interrelated. end a will they're that. we we'll but So decision we don't

project easy strong a then very of Quebradona economics. point view. that probably with And it's will be So from that

question then it's blockading complicated a will time. It And nothing in when exactly license, was it that many project it's go of will will guidance, more possible it's as so won't guidance an as of wrote getting environmental we many, now in issue but is If -- more. take we approved. ready the so quick what terms -- go try that But and be I February, it to and years.

Dominic O'Kane

So in update the capital year? markets my obviously, question is, earlier with the

Alberto Calderon

XXXX. or we guidance Look, capital market. will I been 'XX. guidance I for a only February end it's over. started has all this am, 'XX, the have give in three-year by clear And Yeah, I maybe I that will of have

I your with So, and indulgence build why is look, that firm -- lose. deliver is for understanding that? thing I've I we difficult well asked as Because, but we as that, one to to when possible be that out understand in on credibility them. easy come numbers, the very is very can I to And in want

size? we so the But three the you let a that in worried asked, get XXXX, Or And give February. what potential then the I do am have February number then I no. guidance. is and about there's probably can Or is we to? one optimal have will answer And tell will we size? we that. that where a only four question the me And something to to there is the And full why related after what only assessed we the to is, been year that do, optimal that's need

but model, on operating building organization. Chief a an are inexpensive organization the functional, Technology we not technical, the structures very that like I think the highly it's the Officer, that qualified,

that. You an or around or minus X for of be XX% organization XX%, minus ounces, can sustain that it X% plus it probably has million can

size, value we get potential around be at is am to okay. it to peak to waded I So the adds our any its will performance not that, have I'm assets wherever particular waded what in that whatever we and company. portfolio

Dominic O'Kane

so Thanks much. Thank you.

Alberto Calderon

But, long-term yes will time. it guidance guidance take some the the --

you. Thank Okay.

Operator

Thank to would remarks. like back you. closing to Alberto at mean this -- time, I hand to for I

Alberto Calderon

Okay. all we're anyway, Stewart here.

Okay.

thank for joining all today. So you us

at the said I of retiring Ehm before, As Graham will this year. end be the

a record organization two we bid has that of decades handover the has at each the not with started that step to form months a way, AngloGold. smooth portfolio. very seller in values by than a of the exemplified coming will its the only of ensure XXXX. will oversee build With And more strong of is very And to Graham of so closely in farewell who working delivery also watching we Graham very

results in an will been again, you, interesting thank next So at long day. of our all. reconnect It's Bye. you full-year again. Thank year. And we February all

Operator

and Ladies the conference has concluded. gentlemen, that with Thank you.

line. your disconnect may You now you. Thank

AngloGold Ashanti Limited (AU) 8 Nov 212021 Q3 Earnings call transcript