AngloGold ups half-year earnings, cash flow
JOHANNESBURG (miningweekly.com) – Solid production and cost performances helped gold mining company AngloGold Ashanti to deliver higher earnings and cash flow in the first half of this year.
The increase in headline earnings of $85-million compared with a loss of $93-million in the first half of 2017 for the company, which is forecasting 2018 production at the top end of its guided range, and costs at the bottom end.
Total production for the group was 1.629-million ounces at a total cash cost of $823/oz.
All-in sustaining costs (AISC) for this set of assets fell 5% to $1 020/oz, with international operations achieving a 4% year-on- year reduction in AISC to $948/oz during the first half of 2018, from $988/oz during the first half of 2017.
“We continued to improve our portfolio, strengthen our balance sheet and increase productivity, all of which are the cornerstones of our strategy to improve free cash flow and returns over the long term,” outgoing AngloGold CEO Srinivasan Venkatakrishnan said.
On September 1, Kelvin Dushnisky, the current president of Barrick Gold Corporation, will take over as CEO of AngloGold.
Positive free cash flow of $19-million was recorded during the second quarter of 2018, when the balance sheet also continued to improve, with debt down, liquidity up and near-dated bond maturities completely absent.
Net debt declined by 17% year-on-year to $1.786-billion from $2.151-billion at the same time last year.
The ratio of net debt to earnings was 1.12 times, compared with 1.56 times, well below the covenant ratio of 3.5 times that applies under the revolving credit facilities.
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