Business 8.5.2018 09:36 am

AngloGold Ashanti says it has lowered debt, improved production in first quarter

AngloGold Ashanti says it has lowered debt, improved production in first quarter

The mining group said it remained on track to meet its annual production, cost and capital guidance.

AngloGold Ashanti said on Tuesday it had lowered its debt and improved production and all-in sustaining costs in the first quarter of the year, driving wider margins and stronger cash flows.

The mining group reported production of 824,000 ounces at all-in sustaining cost (AISC) of $1,029 per ounce in the three months to March 31, compared with 830,000oz at AISC of $1,060/oz in the first quarter of last year.

“Production was little changed despite TauTona undergoing orderly closure and the sales of Moab Khotsong and Kopanang concluding a month before the end of the quarter,” the company said.

“Looking only at retained operations, production rose six percent to 773,000 ounces at an AISC of $1,002 per ounce, representing a margin of 25 percent to the gold price received for the period.”

“Our hard work in restructuring the business to focus on portfolio quality is starting to bear fruit as our operations are demonstrating strong, consistent results,” CEO Srinivasan Venkatakrishnan said.

In South Africa, the smaller and more focused footprint delivered an encouraging performance as production from Mponeng increased 29 percent, while rand-denominated all-in sustaining costs fell 14 percent.

Restructuring of the asset portfolio in South Africa was still under way to ensure that both the on- and off-mine cost structures were appropriate for the size of the smaller production base in the country.

AngloGold Ashanti said it remained on track to meet its annual production, cost and capital guidance.

Full-year guidance remained unchanged, with output estimated at 3.325 million ounces – 3.45 million ounces while total cash costs were between $770/ounce and $830/ounce

– African News Agency (ANA)

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