AngloGold CEO Srinivasan (Venkat) Venkatakrishnan
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – South African gold major AngloGold Ashanti has had an outstanding 2013 recording production growth for the first time in a decade, cutting all-in sustaining costs and achieving the best safety in its history.
The JSE- and NYSE-listed gold company took yearly output to 4.105-million ounces at an all-in sustaining cost of $1 015/oz.
Despite free cash outflow reducing from $205-million to $82-million, after all capital, tax and interest payments, the AngloGold board decided against a dividend declaration.
“It would not be a smart move at this time to borrow money from the banks to pay dividends,” AngloGold CEO Srinivasan (Venkat) Venkatakrishnan commented to Mining Weekly Online.
The new Tropicana mine Australia and Kibali mine in the Democratic Republic of Congo added 106 000 oz to the AngloGold total at a low average cash cost of $532/oz.
Sold off is the small Navachab mine in Namibia and closed is the under-performing Yatela mine in Mali.
The current worst-performing mine, Obuasi in Ghana, is undergoing reform, which will include an element of mechanisation.
Projected 2014 production is expected to be from 4.2-million ounces to 4.5-million ounces.
The capital expenditure outlook for 2014 is a decline of 31% to between $1.3-billion and $1.45-billion.
In 2013, strong quarter-four (Q4) production of 1 229 000 oz rose 43% on Q4 2012 and 18% on the previous quarter.
Net debt to earnings before interest tax depreciation and amortisation fell to 1.86 times, down from 2.02 times in third quarter.
Adjusted headline earnings leapt 49% to $164-million and the all-injury frequency rate was the lowest ever at 7.33 for every million hours worked for the year.
Corporate and exploration costs fell 20% in Q4 from the previous quarter.