AngloGold beats Q3 guidance; prioritises self-help steps to cut debt - CNBC Africa

AngloGold beats Q3 guidance; prioritises self-help steps to cut debt


by Trust Matsilele 0

AngloGold Beats Q3 Guidance; Prioritises Self-Help Steps to Cut Debt. PHOTOS: Getty Images

This helped the mining company generate free cash flow and reduce debt as fundamental operating and safety improvements continued to gain traction across the group.

(READ MORE: AngloGold Ashanti posts strongest Q1 performance in four years)

“The company also narrowed its production outlook for the year to the top end of the initial guidance range and reduced its capital expenditure forecast,” said [DATA ANG:AngloGold Ashanti Limited]on SENS.

The group reported the production total cash cost as having beat guidance.

“Production was 1.128Moz at a total cash cost of US dollars 820/oz for the three months to September 30, compared to 1.043Moz at a total cash cost of US dollars 809/oz in the corresponding period of last year,” said the company.

“Guidance for the quarter was for 1.06Moz – 1.09Moz at US dollars 850/oz – US dollars 890/oz.”

The group also said the all-in-sustaining costs, which include sustaining capital as well as corporate and exploration costs, improved 10 per cent year-on-year to US dollars 1,036/oz.

AngloGold Ashanti said these cost improvements were made despite annual wage and winter power tariff increases.

(READ MORE: AngloGold Ashanti revenue down despite 17% production increase)

Chief Executive Officer Srinivasan Venkatakrishnan said the group’s operations were firing on all cylinders.

“We have 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,” said Venkatakrishnan.

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

The company said it will use cash flows and facilities to fund the remaining retrenchment costs at the mine during the fourth quarter.