AngloGold production up

FILE PICTURE: Miners. Picture: Michel Bega

FILE PICTURE: Miners. Picture: Michel Bega

AngloGold Ashanti’s production increased eight percent year-on-year for the third quarter of 2014, according to results released on Monday.

Production for the quarter was 1.128 million ounces (Moz) at a total cash cost of US820/oz for the three months to September 30.

It was 1.043Moz at a total cash cost of US809/oz in the corresponding period last year.

This meant the company’s costs and production for the third quarter beat guidance and helped it generate free cash flow and reduce debt.

Adjusted headline earnings were US2m in the three months to September 30 2014, compared with US576m in the corresponding period of 2013.

CEO Srinivasan Venkatakrishnan said in a statement that operations were “firing on all cylinders”.

“We’ve prioritised and have started working on a range of self-help measures to generate cash from within the current operating base to further deleverage the balance sheet over the medium-term,” he said.

“We will also consider the sale or partnership of an operating asset, if required.”

The company’s tightened production outlook came despite the sale of the Navachab mine in Namibia in May, losses caused by the earthquake in South Africa in August, and the transition of the Obuasi Mine, in Ghana, to limited operating state by year-end.

AngloGold said it recorded its longest fatality-free period in the company’s history — two successive quarters.

The company’s other safety metrics also reached their best levels ever, which was noteworthy given the earthquake that affected its Vaal River mines in August. All 3300 employees working underground were safely brought to the surface, with only a handful of minor injuries reported.





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