AngloGold Ashanti revenue down despite 17% production increase - CNBC Africa

AngloGold Ashanti revenue down despite 17% production increase

Earnings

by Trust Matsilele 0

AngloGold Ashanti revenue down despite surge in production. PHOTOAS: Path Finder/Getty Images

The African mining group’s six months ended June 30 results also reported a 17 per cent increase in its production.

The group attributed its normalised adjusted headline earnings of 76 million US dollars on strong production.

The company noted that this happened despite lower gold prices, inflation and winter power tariffs.

(READ MORE: S&P affirms AngloGold credit rating)

The company noted that the overall result showed significant improvement in all key areas.

Chief executive officer Srinivasan Venkatakrishnan said the half year results were an indication of another strong result period with growth in production and lower costs across the board.

Venkatakrishnan noted that the company's continued improvement in safety was what the company was most proud of, and where it says it intended to do better still.

“In the second quarter, compared with the corresponding period a year earlier, production rose 17 per cent, all-in sustaining costs fell 19 per cent, corporate and marketing costs were down 65 per cent,” the company said in a statement.

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[DATA ANG:AngloGold Ashanti Limited] also explained that exploration and evaluation costs were 58 per cent lower with capital expenditure down 44 per cent, all-in costs down 29 per cent and EBITDA up 33 per cent.

The company is positive about its future prospects with the full year production outlook remaining intact.

“These results helped turn around a cash burn of 488 million US dollars in the second quarter of 2013, to a positive cash flow of 34 million US dollars, notwithstanding a 132 US dollars/drop in the gold price."

AngloGold Ashanti is in the process of safely restarting its Great Noligwa and Moab Khotsong mines which were halted following a 5.3 magnitude earthquake that originated in the vicinity of the town of Stilfontein, on August 5.

(WATCH VIDEO: 17 AngloGold Ashanti employees injured after earthquake hit Jhb)

“In total, 3,300 people working underground when the earthquake occurred were safely hoisted to surface within seven hours of the event,” said the company.

“Twenty-eight people were treated for minor injuries and discharged, while trauma counselling was provided to those employees and contractors who required it.”

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