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FEISTY FOCUS

15th November 2013

By: Martin Creamer

Creamer Media Editor

  

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Cash inflow into AngloGold Ashanti from operations rose 128% in the three months to September 30 to $319-million as a result of a feisty management focus, which saw 12% more gold produced and costs fall by 10%. Two brand-new mines in Australia and Africa delivered lower-cost gold in the nick of time to turbocharge the JSE- and NYSE-listed company. Under the rock-ribbed leadership of AngloGold Ashanti CEO Srinivasan Venkatakrishnan, above, the company will be able to absorb any gold-price shock, but should the gold price surprise on the upside, the company is perfectly positioned to cream off the extra cash flow. A seven-year bond has been issued to improve liquidity and the debt-covenant waiver is surplus to current needs. The only negative aspect of the company’s third quarter was a 7% lower gold price, which management could do nothing about.

Edited by Creamer Media Reporter

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