AngloGold Ashanti has returned to annual production growth in 2013 for the first time since 2005, following successful cut spending and the commissioning of two new mines. The JSE- and NYSE-listed gold company is enthusiastic that this trend will continue, expecting a production of 4.2 million and 4.5 million ounces of gold during 2014.
“Thanks to our investment made in prior years, we are starting to reverse nearly a decade of shrinking production,” said AngloGold CEO Srinivasan Venkatakrishnan (Venkat). “This gives us the flexibility to remove marginal production without compromising our base, which sets us apart in a sector that generally continues to shrink.”
Production in 2013 was 4.105 Moz, exceeding guidance, compared to 3.944 Moz in 2012, the first time yearly production increased in almost a decade, AngloGold said in a statement. Furthermore, all-in sustaining costs (AISC) for the year were US$1 174 per oz, down from US$1 251 per oz the previous year.
AngloGold’s new Tropicana project in Australia and Kibali project in the Democratic Republic of Congo delivered a total attributable production of 106 000 oz of gold at an average cash cost of US$532 million. “This provides the flexibility to further rationalise marginal production while the group continues to focus on overhead and operating costs,” the company said.
In response to the rapid gold price drop in 2013, AngloGold cut corporate costs and exploration spending. “We continue to refocus the entire business to give us sustainable free cash flow,” Venkat said.