Outlook for 2020
FY 2020 Production guidance, as updated with the Q1 2020 operating update, remains intact at between 2.200Moz and 2.250Moz.
In light of the increase in costs in H1 2020, we are increasing our cost guidance for the year. AISC is expected to be between US$960/oz and US$980/oz (original guidance: US$920/oz – US$940/oz) and AIC is expected to be between US$1,070/oz and US$1,090/oz (original guidance: US$1,035/oz – US$1,055/oz). The revised cost guidance is based on an estimated rand exchange rate of R17.00 and A$ exchange rate of 0.70 for H2 2020. Increased royalties (due to the higher gold price) account for US$15/oz of the cost increase, while COVID-19-related costs account for US$10/oz. Potential further COVID-19-related disruptions increases the risk to Group production and cost guidance.
The above is subject to safety performance which limits the impact of safety-related stoppages and the forward looking statement. |