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South Africa’s AngloGold Ashanti posts free cash flow in Q1

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – AngloGold Ashanti Ltd posted a free cash flow in its first quarter compared with an outflow last year due to cost and debt cuts, Africa’s biggest bullion producer said on Monday.

“We generated significant free cash flow again despite the lower gold price, which shows the continued success of our self-help measures to reduce debt by improving margins,” said Srinivasan Venkatakrishnan, chief executive officer, AngloGold Ashanti.

The company, which has 17 mines in nine countries, said free cash flow in three months to March-end reached $70 million from an outflow of $40 million in the first quarter of 2015.

Adjusted gross profit edged up to $210 million at the end of March from $209 million in the same period last year.

AngloGold said it cut debt and costs during the quarter, resulting in cash flow, benefiting weaker local currencies against the dollar.

South African miners sell their commodities in dollars while paying costs in rand, boosting margins when the exchange rate weakens against the greenback.

Production in the quarter fell 7 percent to 861,000 ounces compared with the same period last year, due to planned reductions from Obuasi, Tropicana and Morila mines, and unplanned output drop in Kibali joint venture.


(Reporting by Zandi Shabalala; Editing by Sherry Jacob-Phillips)

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AngloGold swings to 2015 profit on weaker currencies, oil prices

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – Africa’s top bullion producer AngloGold Ashanti Ltd on Monday said it swung into profit in 2015 as it benefited from lower oil prices and weaker currencies in the countries from which it exports gold.

Adjusted headline earnings, which exclude certain one-off items, were $49 million versus a year-earlier loss of $1 million.

“The results for the fourth quarter and full year 2015 show the combination of a strong ongoing focus on cost and capital discipline, as well as the operational leverage the company has to weaker currencies and lower oil prices,” AngloGold said.


(Reporting by Ed Stoddard)

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