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AU NYSE· AngloGold Ashanti PLC
Earnings report Q4 2023

AngloGold Ashanti's Revenue Shows Mixed Performance in Latest Quarter

Segments of revenue

In the latest quarter, AngloGold Ashanti reported revenue from three main segments: Africa, Australia, and Americas. The Africa segment generated $1.79 billion in revenue, representing a slight increase compared to the previous quarter. Within Africa, the Kibali mine, in which AngloGold Ashanti has a 45% stake, contributed significantly to the segment's revenue with $544 million. The Australia segment reported revenue of $1.17 billion, showing a decline compared to the previous quarter. The Sunrise Dam mine was the primary revenue driver in Australia, contributing $455 million. The Americas segment reported revenue of $1.26 billion, indicating a substantial increase compared to the previous quarter. The Cerro Vanguardia mine was the main revenue contributor in the Americas, generating $584 million.

Strengths

AngloGold Ashanti's revenue performance in the latest quarter was primarily driven by the strong performance of its African and Americas segments. The Kibali mine in Africa and the Cerro Vanguardia mine in the Americas significantly contributed to the company's revenue growth. Management attributed the increase in revenue to higher gold prices and increased production volumes at these mines. Additionally, the company's equity-accounted joint ventures, included in the revenue figures, also contributed positively to the overall performance.

Challenges

Despite the overall positive revenue performance, AngloGold Ashanti faced challenges in its Australia segment, where revenue declined compared to the previous quarter. The decline can be attributed to lower production volumes and lower gold prices during the period. The company's management will need to address these challenges and implement strategies to improve the segment's performance in the future.

Noteworthy

It is worth noting that AngloGold Ashanti's revenue from its equity-accounted joint ventures, included in the segmental revenue figures, showed a significant decrease in the latest quarter. This decrease can be attributed to lower production volumes and lower gold prices at these joint ventures.

Summary

AngloGold Ashanti's revenue performance in the latest quarter showed mixed results across its segments. While the Africa and Americas segments experienced revenue growth, the Australia segment faced challenges with a decline in revenue. The strong performance of the Kibali mine in Africa and the Cerro Vanguardia mine in the Americas contributed to the overall revenue growth. However, the decline in revenue from equity-accounted joint ventures is a noteworthy factor. Going forward, the company will need to address the challenges in the Australia segment and focus on optimizing production volumes and gold prices to ensure sustained revenue growth.

Source documents

Form 6-K  filed on Feb 23, 2024
9 pages scanned

Reference data

Company financials Q4 revenue 1.20B
Analyst estimates Q4 EPS missed by NaN%
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