AngloGold Ashanti posted an overall profit of $ 363 million in the first half in a difficult first half, with performance affected by the ongoing COVID-19 pandemic, increased costs, lower achieved levels in some operations and the suspension volunteer of underground mining activities at the Obuasi Mine following a fatal accident on May 18, 2021.
Aggregate earnings of $ 363 million, or 87 US cents per share, in the first six months of 2021, compared to $ 404 million, or 97 US cents per share, in the first half of 2020. Adjusted net debt decreased by 41 YoY% -Year at $ 850 million as of June 30, 2021, compared to $ 1.431 billion as of June 30, 2020. The Company declared a dividend of ZAR 87 cents per share (approximately US 6 cents per share) for the six-month period ended. June 30, 2021.
Production for the first six months of 2021 was 1,200 Moz for a total cash cost of $ 1,003 / oz, compared to 1.323 Moz at $ 770 / oz for continuing operations for the first six months of 2020. Sustaining costs all-inclusive (AISC) were $ 1,333 / oz for the first six months of 2021, compared to $ 1,002 / oz from continuing operations for the corresponding period last year, mainly reflecting higher cash costs, higher sustaining capital expenditures in line with the tailings compliance program and planned reinvestment targets in the portfolio, the impacts of COVID-19, inventory movements and the decline in gold sold. Production for the semester was impacted by approximately 42,000 ounces due to COVID-19.
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“AngloGold Ashanti remains focused on its strategy of creating long-term value, while maintaining a strong balance sheet and mitigating financial or operational risks for the company,” said Christine Ramon, interim CEO. “Our reinvestment projects remain on track to improve operating flexibility and access to higher grades. We are also looking for operating and investment savings for the rest of the year. “
AngloGold Ashanti’s strategy of improving operating flexibility through investments in the development of ore reserves and expansion of ore reserves to sites with high geological potential remains a key priority and is reflected in the 33% year-over-year increase in total capital spending to $ 461 million (including recognized joint venture equity) in the first half of 2021, from $ 346 million from continuing operations in the first half of 2020 .
This year and the next remain years of transition for the Company, with higher volumes of waste stripping and underground development accompanied by lower grades and stock movements. The Company expects lower grade extraction and inventory utilization to be transient in nature as the reinvestment program provides improved flexibility and access to higher grades, and as vaccination leads to progress in our jurisdictions most affected by COVID-19. Despite significant pressure on the costs associated with the transition of tailings storage facilities (TSF) in Brazil, this investment is also transitory given the upcoming legal deadline.
Mining activities at Obuasi will remain on hold pending the conclusion of a third party review of the mining and land management plans.