File: Gold companies AngloGold Ashanti, Evander Gold Mines, Harmony, Sibanye Gold and Village Main Reef met Amcu, NUM, Solidarity and Uasa over three days last week.
JOHANNESBURG - Despite lower production output in domestic and international operations, AngloGold Ashanti on Monday reported a significant jump in third-quarter free cash flow to $161 million, up from $50 million for the corresponding period of last year.
Free cash flow was $161 million, before the $30 million once-off cost incurred for the early repayment of its high-yield bond, the company’s most expensive debt.
The free cash flow generation for the three months to end of September was also 49 percent more than the $108 million generated in the first half of this year.
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) rose by 36 percent to $395 million in the third quarter, from $291 million in the corresponding period of last year.
AngloGold Ashanti said this free cash flow had improved its net debt position.
Chief executive Srinivasan Venkatakrishnan said the company took this year’s cumulative free cash flow to nearly a quarter of a billion dollars and further reduced its debt.
“Work is already well advanced to turn around our operating performance in the near term by improving volumes and accessing higher grades as per our plans, and over the medium term by investing in our low-capital, high-return brownfields projects,” Venkatakrishnan said.
Production in the third quarter was 900,000 ounces, down from 974,000 ounces in the third quarter of last year.
Total output from South Africa dipped seven percent year-on-year to 235,000 percent, mainly due to lower average recovered ore grades from underground.
The company’s mines in South Africa faced stoppages following three fatalities in July.
AngloGold Ashanti said lower production of 665,000 ounces from the international operations, compared with 702,000 ounces in the third quarter of last year, was mainly a result of lower ore grades as planned.