Patrick Jones

Patrick Jones of JPMorgan Chase & Co. inquired about AngloGold Ashanti's shareholder return strategy, specifically asking what conditions would prompt a shift from dividends to share buybacks, and sought clarity on the eventual permitting and development timelines for the Arthur Gold Project, including the first output, in light of North Bullfrog's CapEx.

Answer

CEO Alberto Calderon stated that buybacks are part of the capital allocation 'book' but were not deemed appropriate for the recent $300 million additional payment, which was a supplementary dividend. CTO Marcelo Godoy indicated that the company aims for the Record of Decision (ROD) for Arthur before the end of the decade, with production starting in the beginning of the next decade, capitalizing on a fast-track NEPA process.

Patrick Jones asked about the company's shareholder return strategy, specifically if buybacks would be considered given their mention on the shareholder return slide, and what conditions might prompt a shift from dividends to buybacks. He also sought details on the permitting and development timelines for the Arthur project, including the first output, especially in light of upcoming North Bullfrog CapEx.

Answer

CEO Alberto Calderon stated that buybacks are part of the company's capital allocation considerations but that the current dividend policy is generous, and the recent additional dividend was a supplementary payment. He emphasized a step-by-step approach to cash allocation. Regarding Arthur's permitting, Mr. Calderon mentioned seeking a fast-track process with strong government support but refrained from giving specific timelines due to external factors. CTO Marcelo Godoy added that the company aims for a Record of Decision (ROD) before the end of the decade and production by the beginning of the next decade, leveraging the fast-track NEPA process.

Patrick Jones asked about the key impediments to decarbonizing mining fleets and whether the industry needs to shift its focus to different decarbonization pathways given the slow technological advancement from OEMs.

Answer

Mike Fraser, ED & CEO, agreed that the slow pace of OEM development for low-carbon fleets is a challenge. He stated that Gold Fields is not waiting and is actively pursuing alternative pathways, such as installing material handling systems to eliminate haul trucks, which can then be powered by renewable energy sources.