Modern Mining August 2021

MINING News

AngloGold Ashanti advances reinvestment projects

AngloGold Ashanti delivered first-half headline earnings of US$363-million amid a challenging first half of the year, with perfor- mance affected by the ongoing COVID-19 pandemic, increased costs, lower realised grades across certain operations and the voluntary suspension of underground min- ing activities at the Obuasi Mine following a fatal accident on May 18, 2021. Headline earnings of US$363-million, or 87 US cents per share, in the first six months of 2021, compared to US$404- million, or 97 US cents per share, in the first

half of 2020. Adjusted net debt declined by 41% year-on-year to US$850-million at June 30, 2021, from US$1,431-billion at June 30, 2020. The company has declared a dividend of 87 ZAR cents per share (approximately 6 US cents per share) for the six months ended June 30, 2021. Production for the first six months of 2021 was 1 200 Moz at a total cash cost of US$1 003/oz, compared to 1 323 Moz at US$770/ oz from continuing operations for the first six months of 2020. All-in sus- taining costs (AISC) were US$1 333/oz for

the first six months of 2021, compared to US$1 002/oz from continuing operations for the corresponding period last year, mainly reflecting higher cash costs, higher sustaining capital expenditure in line with the tailings compliance programme and the planned reinvestment objectives in the portfolio, COVID-19 impacts, stockpile move- ments and lower gold sold. Production for the half year was impacted by an estimated 42 000 oz due to COVID-19. “AngloGold Ashanti remains focused on its strategy to create long-term value, while maintaining a strong balance sheet and mitigating any financial or operating risks to the business,” says interim CEO Christine Ramon. “Our reinvestment projects remain on track to improve operating flexibility and access to higher grades. We are also pursu- ing operating and capital efficiencies over the remainder of the year.” AngloGold Ashanti’s strategy of improv- ing operating flexibility through investment in ore reserve development and ore reserve expansion at sites with high geo- logical potential remains a key priority and is reflected by the 33% year-on-year increase in total capital expenditure to US$461-million (including equity accounted joint ventures) in the first half of 2021, com- pared to US$346-million from continuing operations in the first half of 2020. This year and next remain transitional ones for the company, with the higher volumes of waste stripping and under- ground development accompanied by lower grades and the movements of stock- piles. The company expects the mining of lower grades and stockpile utilisation to be transitory in nature as the reinvest- ment programme provides improved flexibility and access to higher-grades, and as vaccination drives progress across our jurisdictions most affected by COVID-19. Notwithstanding significant pressure on costs related to the tailing storage facilities (TSF) transition in Brazil, this investment is also transitory given the upcoming legal deadline. Mining activities at Obuasi will remain suspended pending the conclusion of a third-party review of the mining and ground management plans. On September 1, 2021, Alberto Calderon will assume the role of CEO of the company and Christine Ramon will return to her role as the company’s chief financial officer. 

Mining activities at Obuasi will remain suspended pending the conclusion of a third-party review of the mining and ground management plans.

Lucara recovers 393 carat top white gem diamond Lucara Diamond Corp has announced the recovery of a 393,5-carat top white Type IIa gem quality diamond from its wholly-owned Karowe Diamond Mine located in Botswana. The diamond was recovered from direct mill- ing of ore sourced from the M/PK(S) unit of the South Lobe.

M/PK(S) material. The 393-carat diamond is the seventh diamond greater than 300 car- ats to be recovered at Karowe year to date and the third gem quality +300 carat pro- duced from the M/PK(S) unit in 2021, along with the 341-carat (January 14, 2021) and 378-carat (January 26, 2021) top white gems recovered in January this year. CEO Eira Thomas comments: “Lucara is pleased to announce the recovery of the 393-carat Type IIa white from the M/PK(S) unit of the South Lobe, the third +300 carat white gem from the M/PK(S) in 2021. The recent recovery continues to demonstrate the strong and consistent resource perfor- mance of the South Lobe. The 393-carat and 156-carat diamonds add to the collec- tion of significant diamond recoveries in 2021, as Lucara looks to ramp up construc- tion activities for the proposed underground expansion at Karowe.” 

During the same production month a 156,2 carat top white gem quality diamond was also recovered from processing of

4  MODERN MINING  August 2021