AngloGold Ashanti revenues exceed expectationby MTHULIS SIBANDA
JOHANNESBURG, (CAJ News) – ANGLOGOLD Ashanti, the miner of the precious metal, has generated $71 million of free cash flow in the second quarter of the year.
This comes on the back of another strong performance from its
international mines and a recovery from its South African operations.
Srinivasan Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti, said cost management would continue to be a key driver for the company.
“Whilst we’ve greatly improved the balance sheet following the sale of CC&V, this will not diminish our focus on improving free cash flow and returns through active portfolio management, capital discipline, and unrelenting focus on our operations,” he said.
AngloGold Ashanti has responded to lower prices by cutting overhead
expenditure by more than two-thirds since the end of 2012, whilst lowering all-in sustaining costs (AISC) by about a quarter over the same period.
The group has introduced two new, low-cost mines, sold or closed
higher-cost assets and removed unprofitable ounces from its portfolio.
The company also sold its Cripple Creek & Victor mine (CC&V) in the US for $820 million in June of this year to reduce net debt, and is now intensifying efficiency efforts to complement the cost benefit it receives from weakening local currencies and plummeting oil prices.
The company’s international mines saw AISC 17 percent lower than the
second quarter of 2014 at $844/oz. Standout performances were delivered by the Geita and the South American mines in Brazil and Argentina, while the contribution from Tropicana and Kibali reflected their full ramp-up.
Work continues on a brownfield project options to extend life, improve production or enhance efficiencies, at the Geita, Serra Grande, Siguiri and Sunrise Dam mines.
While production from South Africa was lower year-on-year, the mines
improved their performance from the first quarter with a 9 percent
increase in production.
The improved performance reflected in second-quarter adjusted headline earnings was $26m, or 6 US cents per share in the three months to 30 June 2015, compared with a loss of $4m, or 1 US cents per share, in the second quarter of 2014. Adjusted headline profit of $35m, or 9 US cents per share, was recorded the previous quarter.
Adjusted earnings before interest, tax, depreciation and amortization was $391m, compared with $372m in the second quarter of 2014, with the resulting improvement despite the 8% reduction in the gold price received and lower production.
Meanwhile, gold production for the third quarter of 2015 is estimated to be between 900 000oz to 950 000oz and total cash costs of $770/oz to $820/oz assuming average exchange rates of R12,20/$.
– CAJ News
Short URL: http://cajnewsafrica.com/?p=7567