AngloGold Ashanti to Cut 900 Jobs in South Africa
Nov 12 14
AngloGold Ashanti announced that it may cut around 900 jobs in order to reduce costs. Lower gold prices, rising costs and increased taxes have been cited by the company as the reason for reducing its workforce. The downsize could affect 1,200 jobs out of the 32,000 employees in the country. AngloGold is considering reassigning 300 of its staffs to other positions; however, the remaining 900 are facing redundancy. The firm is likely to lay-off employees from over-staffed units and to give preference to those aged above 55 years.
AngloGold Ashanti Ltd. Announces Release of Maiden Resource for Nuevo Chaquiro Deposit
Nov 3 14
AngloGold Ashanti Limited announced the first Mineral Resource for the Nuevo Chaquiro deposit in the Quebradona Project Area. The Quebradona Project is a Joint Venture between AGA (88.5%) and B2Gold (11.5%). B2Gold is not participating in the exploration expenditure and its interest in the project is being diluted. The Quebradona Project is situated in the Middle C uca region of Colombia, in the Department of Antioquia, 60 km southwest of Medellin. The maiden Inferred Mineral Resource for Nuevo Chaquiro is 604Mt at an average grade of 0.65% copper, 0.32g/t gold, 4.38g/t silver and 116ppm molybdenum for a contained metal content of 3.95Mt copper, 6.13Moz gold, 85.2Moz silver and 70Kt molybdenum. The Mineral Resource released here was tested for and found to have reasonable and realistic prospects for eventual economic extraction.
Anglogold Ashanti Ltd. Reports Unaudited Consolidated Earnings and Operating Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Production Guidance for the Full Year 2014 and Revises Capital Expenditure Guidance for the Full Year 2014
Nov 3 14
AngloGold Ashanti Ltd. reported unaudited consolidated earnings and operating results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported production od 1.128Moz compared to 1.043Moz in the corresponding period of last year. All-in-sustaining costs, which include sustaining capital as well as corporate and exploration costs, improved 10% year-on-year to $1,036/oz. These cost improvements were made despite annual wage and winter power tariff increases.
For the nine months, the company reported production of gold of 3,280,000 oz compared to 2,876,000 oz in the corresponding period of last year.
The company reported cash inflow from operating activities of $320 million for the three months to September 30, 2014 was similar to the $319 million in the third quarter in 2013, despite the lower gold price received. Free cash flow was $30 million after all expenditures in the third quarter, compared to the total outflow of $222 million in the third quarter of 2013, highlighted significant operating and cost improvements across a broad front. Adjusted headline earnings (AHE) were $2 million in the three months to 30 September 2014, compared with $576 million in the corresponding period of 2013, when AHE reflected a $567 million realised fair value gain on a three-year convertible bond. By removing a number of once-off items, normalised AHE for the period, was $66 million, or 16 cents a share, compared with $110 million or 28 cents in the corresponding quarter of 2013. This was due to a lower gold price, annual inflationary increases, higher amortisation and taxation charges. Adjusted EBITDA increased to $400 million from $327 million in the third quarter of 2013. For the quarter, the company reported revenue of $1,337 million against $1,415 million a year ago. Operating profit was $149 million against $80 million a year ago. Profit before taxation was $129 million against $32 million a year ago. Profit for the period was $44 million against loss for the period of $6 million a year ago. Diluted loss per ordinary share was 2 cents against 9 cents a year ago. Capital expenditure was $222 million against $327 million a year ago. Expenditure on intangible assets was $3 million against $50 million a year ago. At the end of the third quarter of 2014, net debt was $2,952 million compared to $3,008 million a year earlier.
For the nine months, the company reported adjusted EBITDA of $1,258 million against $1,123 million a year ago. Revenue was $4,054 million against $4,234 million a year ago. Operating profit was $554 million against operating loss of $2,675 million a year ago. Profit before taxation was $222 million against loss before taxation of $2,704 million a year ago. Profit for the period was $16 million against loss for the period of $1,945 million a year ago. Net cash inflow from operating activities was $1,007 million against $815 million a year ago. Capital expenditure was $699 million against $1,129 million a year ago.
The strong performance in the first nine months of 2014 helped the company tighten the production outlook for 2014 to 4.35Moz-$4.45Moz, at the top end of initial of guidance 4.2Moz - 4.5Moz. This improvement comes despite the sale of the Navachab mine in Namibia in May, losses caused by the earthquake in South Africa, and the transition of the Obuasi Mine to limited operating state by the year-end. Forecast capital expenditure for the year 2014, initially set at $1.35 billion - $1.45 billion, has been lowered to $1.25 billion - $1.35 billion, due mainly to savings at the loss-making Obuasi mine.