S&P affirms AngloGold credit rating - CNBC Africa

S&P affirms AngloGold credit rating


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AngloGold Ashanti Limited is a global gold mining and exploration company. PHOTO: Getty Images

The credit rating’s company also placed AngloGold on negative outlook and removed it from CreditWatch Negative.

“The decision to affirm the credit rating was taken because of actions by AngloGold Ashanti’s management to partially offset the effects of a lower gold price by cutting costs and curbing capital expenditure, in addition to benefits the company has realised from favourable foreign exchange movements,” [DATA ANG:AngloGold Ashanti Limited] said.

This was after the global gold mining and exploration company recently reported an almost 40 per cent decline in its 2013 full year earnings.

(READ MORE: AngloGold Ashanti year earnings drop 39 per cent)

Full-year adjusted headline earnings were 599 million US dollars in 2013, down from 988 million US dollars in 2012.

“Last year (2013) marked the best year of safety performance in AngloGold Ashanti history, providing an anchor for solid production and cost results amidst a challenging gold price environment, wage negotiations in South Africa, and a significant restructuring of corporate and operating cost,” it had said.

“Despite a 16 per cent decline in the gold price received for the year, the company recorded solid performance for the full year 2013, reflecting a four per cent increase in production and all–in sustaining costs, despite inflation decreasing by roughly six per cent compared with 2012.”

(READ MORE: AngloGold Ashanti to sell Namibian unit for $110 mln)

AngloGold also announced in early February that it had sold its Namibian unit for 110 million US dollars to private mining group QKR.

“We are executing on our strategy to focus our efforts on assets of scale that drive value in the business,” said AngloGold's executive vice president of strategy and business development, Charles Carter.