HomeBusiness and policyAngloGold's y-o-y Q3 performance sees cost rise and production decline

AngloGold’s y-o-y Q3 performance sees cost rise and production decline

AngloGold Ashanti has provided its financial and operational update for the three-month period ended 30 September 2021.

The Company registered an improved operating quarter from its producing assets versus the prior quarter, reporting production and cost improvements, underpinned by higher underground grades.

The investment programme to extend mine lives and enhance operating flexibility, continued to make progress. Production and costs for 2021 are expected to be in line with revised guidance.

The year-on-year performance, which saw costs rise and production decline from the third quarter of 2020, was impacted by the voluntary suspension of underground mining activities at Obuasi in May, lower grades at certain operations, inflationary effects, and the ongoing impacts of COVID-19.

Newly appointed CEO Alberto Calderon has prioritised reductions in all costs, improvements in operating and capital efficiencies and the implementation of a new operating model to ensure accountability and operational consistency and to enhance the Company’s positioning through the cycle.

“We must put in place the right foundation for long-term success, and the most crucial part of that is an operating model which prioritises efficiency, agility and accountability,” Calderon said.

“My immediate aim is to ensure that we have the right people, in the right places, making the right decisions, to provide better outcomes.”

“AngloGold Ashanti remains focused on its strategy to create long-term value by improving the quality of its portfolio and production base, whilst maintaining a strong balance sheet.

“A new $750 million bond was issued at a record-low coupon in October 2021 and the proposed acquisition of Corvus Gold, for which a definitive agreement was signed in September 2021, provides the opportunity to establish a meaningful, low-cost production base in Nevada.

“The balance sheet remains in a solid position, with approximately $2.5 billion in liquidity, including cash of $1.1 billion at the end of September 2021.

“Doing the basics right, will help us realise production and cost improvements. By empowering the line, our operators will have the organisational clarity and resources – and also the clear accountability – to deliver on their mine plans.” said Calderon