Kelvin Dushnisky
Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – AngloGold Ashanti set a new safety record, kept key projects on track and lifted second-quarter production and cash flow in the three months to June 30, the Johannesburg- and New York-listed gold mining company said on Thursday.
The company achieved four consecutive quarters and a total of 449 days without a fatality, a first in the history of AngloGold Ashanti, which operates Mponeng, the world's deepest mine.
"Mponeng has operated very well from a safety perspective and is improving," AngloGold Ashanti CEO Kelvin Dushnisky said in response to Mining Weekly Online.
The second-quarter all injury frequency rate of 3.07 injuries per million hours worked was a 27% improvement on the first quarter.
An especially strong fourth quarter is anticipated as operating and cost guidance remains on schedule, the company added in reporting 7% higher output of 801 000 oz in the three months to June 30.
Free second-quarter cash flow rose to $78-million, compared with a first-quarter outflow of $109-million.
The average gold price received of $1 302/oz was a mere $5/oz up on quarter-one. As of August 4, the gold price has averaged $1 414/oz.
“While we’ve seen a rally in the gold price, this will not diminish our focus on improving free cash flow and returns through active portfolio management and strict capital discipline,” Dushnisky said, adding that tight cost management would continue to be a key company driver.
Quarter-two production was 1.554-million ounces at $792/oz cash cost, down from $807/oz on the corresponding period of last year.
Production decreases from Sunrise Dam and Siguiri, as well as a planned decrease in production from Cerro Vanguardia were partly offset by strong improvements from Kibali, Iduapriem, Geita and Tropicana.
AngloGold Ashanti is streamlining its portfolio to ensure greater management focus and to concentrate its capital on projects delivering the highest returns.
The company has received strong interest for its remaining South African assets. Separate sale processes are underway for its holdings in the Cerro Vanguardia mine in Argentina and the Sadiola mine in Mali.
Obuasi in Ghana remains a strategic priority with work continuing towards meeting a tight schedule of achieving its first gold pour at the end of this year.
All-in sustaining costs (AISC) for the first half of 2019 improved by 2% year-on-year to $1 002/oz, while total cash costs declined by 4% year-on-year to $792/oz, reflecting a solid performance at Kibali with a higher contribution from the underground mine, improved grade-control at Iduapriem alongside better metallurgical recoveries at Tropicana and a streamlined South Africa portfolio, which delivered a $139/oz or 11% AISC improvement.
Capital expenditure is expected to be between $850-million and $920-million and good progress has been reported with regard to brownfield and greenfield exploration.