Higher grades and efficiency gains helped offset the impacts of rising inflation.

According to the mining giant, production for the third quarter of 2022 rose 20 per cent to 738,000 ounces (oz) compared to 613,000 ounces in the third quarter of last year, underpinned by higher grades across most assets.

Obuasi continued its ramp-up and remains on track for this year’s production guidance of 240,000 ounces to 260,000 ounces.

Total cash costs increased to $966/oz in the third quarter of 2022, 4 per cent higher than the $927/oz in the same period last year, with the improved operating performance partly offsetting both cost increases across several input categories, and lower by-product revenues.

All-in sustaining costs improved 6 per cent year-on-year to $1,284/oz in the third quarter of 2022, from $1,362/oz in the third quarter of 2021.

“We continue to prioritise execution, efficiency and careful allocation of capital,” Chief Executive Officer Alberto Calderon said.

“We are focused on regaining competitiveness versus our peers, and we still have some way to go before we will be satisfied.” Adjusted EBITDA increased 5 per cent to $472 million in the third quarter of 2022, from $448 million in the third quarter of 2021, despite the lower gold price received.

The company recorded free cash flow of $169 million in the third quarter of 2022, versus $17 million in the third quarter of last year.

It continues to generate strong cash flows from its Kibali joint venture, which remitted $71 million during the third quarter of 2022 versus $53 million in the same period last year, despite the lower gold price and lower production from the Kibali mine.

The outstanding VAT balance in Tanzania was further reduced through corporate tax offsets. The balance sheet remained in a solid position after paying an interim dividend, with approximately $2.5 billion in liquidity, including cash and cash equivalents of $1.2 billion at the end of September 2022.

The company announced a new carbon emission reduction target which aims to achieve a 30 per cent absolute reduction in its Scope 1 and Scope 2 Greenhouse Gas (“GHG”) emissions by 2030, as compared to 2021, through a combination of renewable energy projects, fleet electrification and lower-emission power sources.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1 billion, of which $350m is expected to be funded by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure.

This programme is expected to be Net Present Value (“NPV”) positive, adding value to our business by reducing energy cost and improving energy security.