AngloGold Ashanti, the world’s third largest gold miner, may be open to the sale of some of its mines while it looks to cut borrowing and deleverage its balance sheet, it suggested
AngloGold will take various “self-help measures” to generate cash from within the company and cut its debt by $1 billion, it said in a statement to investors. This could include the sale of some of its operating assets.
“Our operations are firing on all cylinders,” CEO Srinivasan Venkatakrishnan said. “We’ve prioritised and have started working on a range of self-help measures to generate cash from within the current operating base to further deleverage the balance sheet over the medium term. We will also consider the sale or partnership of an operating asset, if required.”
The company it had already reduced debt marginally in each of the past three quarters despite a lower gold price, it said. The yellow metal has been trading just above a four-year low throughout Monday’s session and was last at $1,168.40/1,169.20 per ounce, having been above $1,250 a fortnight ago.
The company’s adjusted headline earnings were $2 million in the three months ending September 30, down from $576 million in the corresponding period of 2013 but up from a loss of $4 million in the previous quarter.
Production increased 2.7 percent to 1.13 million ounces, with all-in sustaining costs falling 2.3 percent to $1,036 per ounce. Production for the full year will be 4.35-4.45 million ounces, with all-in sustaining costs between $1,025 and $1,075 an ounce, it said.
This comes despite the sale of the Navachab mine in Namibia in May, losses caused by the earthquake in South Africa and the transition of the Obuasi Mine to limited operating state by the end of the year, it added.
(Editing by Mark Shaw)
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