Join our daily newsletter At The Bell to receive exclusive market insights
- AngloGold Ashanti has more than doubled its free cash flow during the quarter, bringing its total to $87 million
- The major gold producer is resuming production at its 36 million ounce mine in Ghana soon, which is expected to add 400,000 ounces a year to the company’s portfolio
- Following reduced production at its operations in South Africa, AngloGold is in the process of selling its entire South African business
- AngloGold Ashanti’s share price is up 0.78 per cent today, currently sitting at $6.50 per share
AngloGold Ashanti has more than doubled its free cash flow during the September quarter to the previous year, now totalling $87 million.
This comes as the major gold producer prepares to pour first gold at its Obuasi mine in Ghana by the end of the year. Production is expected to recommence at the 36 million ounce ore body project soon.
Once production is up and running again, the mine is expected to begin producing 400,000 ounces a year.
Company CEO Kelvin Dushnisky said: “The team has made extraordinary progress toward meeting the year-end target of bringing this world-class ore body back into production .”
Increasing gold prices are attributed to playing a large role in reducing company debt and improving cash flow.
“The fact that we’ve generated strong cash flow and improved our balance sheet while making this investment is testament to the strength of our portfolio,” Kelvin commented.
Following reduced production at operations in Argentina and Congo and lower grades uncovered at the Mponeng gold mine in South Africa the production total for the quarter is down.
As a result, AngloGold is looking to sell its entire South African business. As well as specific interests in Mali and Argentina.
Additionally, during the quarter AngloGold completed 27,248 metres of drilling at projects in Australia, Brazil, the U.S. and West Africa for a total cost of $7.4 million.
AngloGold Ashanti’s share price is up 0.78 per cent today, currently sitting at $6.50 apiece.
