AngloGold trebles cash flow, cuts debtTINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – ANGLOGOLD Ashanti said it more than trebled free cash flow generation in the first half of the year to $108 million and lowered net debt by almost a third, as costs fell and it took advantage of a higher gold price.
Net debt fell by 32 percent to $2,1 billion as at June 30 of this year from $3,1 billion at the end of June last year, significantly lowering interest payments.
On August 1, AngloGold Ashanti also completed the redemption of the remaining 8,5 percent seven year bonds outstanding, at a total cost of the $503 million.
This extinguished the company’s most expensive debt and fulfilled a key strategic objective by further reducing its future interest payments.
All-in sustaining costs (AISC) improved to an average of $911/oz in the six months through June30, compared with the $924/oz recorded in the first half of 2015.
Production from continuing operations was 1,745 Moz, versus 1,878 Moz.
Chief Executive Officer, Srinivasan Venkatakrishnan, says the company will continue to improve operational and cost performance, as well as overall balance sheet flexibility, regardless of the gold price environment.
“Our focus remains to improve margins and grow cash flow and returns on a sustainable basis.”
– CAJ News
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