AngloGold Ashanti Posts Strong Q3

AngloGold Ashanti delivered a solid third-quarter operating result, with steady production and a significant drop in costs helping drive net debt down by 15% year-on-year. Production for the full year remains forecast for the top end of the guidance range, while costs are expected at the lower end.

 

Production from retained operations, after stripping out the South Africa asset sales, was 851,000oz at a total cash cost of $722/oz for the quarter ended 30 September 2018, compared with 853,000oz at $743/oz in the corresponding period of last year. Mponeng, Kibali, Iduapriem and Tropicana delivered standout performances. In South Africa the restructuring process to better match support infrastructure with the smaller production base, is largely complete.

 

All-in Sustaining Costs (AISC) were $920/oz during the third quarter of 2018, an improvement of $151/oz or 14% compared to the third quarter of last year and a $94/oz improvement from the second quarter of this year. This performance reflects both lower capital expenditure and improved cash costs, supported by Operational Excellence interventions and weaker operating currencies in key jurisdictions, notably Brazil, Argentina, Australia and South Africa.

 

“This is a strong operating result that shows our absolute focus on safety and margins,” Chief Executive Officer, Kelvin Dushnisky said. “While we continue to work on improving efficiencies right across our asset suite, we’re also making steady progress on our projects, which are aimed at improving the overall quality and life of our portfolio.”

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