AngloGold Ashanti reports 231 per cent increase in cash flow despite production loss

Share On Facebook
share on Linkedin
Print

Global gold mining company AngloGold Ashanti has reported an improved first-quarter cash flow from operating activities as key mines delivered solid performances, despite it losing 11,000 ounces of production due to coronavirus affecting its operations.

©

With operations in Brazil, Argentina and South Africa coming to a halt, total production fell to 716,000 ounces in the three months to March 31 from 752,000 ounces in the same period last year.

The company however reported strong performances from its Kibali, Geita and Iduapriem mines which are situated in Congo, Tanzania and Western Ghana respectively.

The miner withdrew its annual production guidance in March.

However, first quarter free cash flow before investment in growth projects rose 231 per cent year-on-year to $94m (€86m, £75m). Cash flow from operating activities rose by 227 per cent from $67m to $219m over the same period.

AngloGold has resumed operations at affected mines, with South African mines able to produce at 50 per cent capacity after the government lifted some lockdown measures.

The company also said it secured an additional $1bn credit facility to supplement cash on hand of around $1.1bn  as it bolstered liquidity to withstand any potential disruptions from the COVID-19 crisis.

Adjusted earnings before interest, tax, depreciation and amortisation increased 54 per cent year on year to $473 million, compared with $307 million in the same quarter last year.

The company has also taken steps to limit the impact of COVID-19 on its operations by building inventories of critical spares and ore stockpiles to improve the ability to respond to operational disruptions.

It has also implemented innovative relief interventions across all host countries, working closely with governments, peers, and communities to help slow the spread of the deadly virus.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210418 23:54:00