Costs improved in the Q1 2019 and all aspects of full-year guidance remained on track, said AngloGold Ashanti while starting a process to review divestment options for its South African assets
Production for the three months ended 31 March 2019 was 752,000oz at an average total cash cost of US$791 per oz, compared to 824,000oz at US$834 per oz during the first quarter of last year.
All-in sustaining costs from these operations fell two per cent to US$1,009 per oz over the same period. The company delivered a solid Adjusted EBITDA margin of 37 per cent, despite a lower gold price and marginally lower production from certain assets, which it had flagged earlier in February.
AngloGold Ashanti is streamlining its portfolio to ensure greater management focus and to concentrate its capital on projects delivering the highest returns. The Company, which today said it started a process to review divestment options for its South African assets, already has processes underway to find buyers for its holdings in the Cerro Vanguardia mine, in Argentina and the Sadiola mine, in Mali.
“Our priorities are to safely improve margins, and to ensure we increase long-term value for our stakeholders,” said Kelvin Dushnisky, CEO of AngloGold Ashanti.
Cash generation, despite the five per cent improvement in total cash costs year-on-year, was offset by a number of factors including a two per cent lower gold price, lower production and sales volumes, and adverse working capital movements.
Iduapriem, Tropicana and Kibali delivered strong operating performances, while production was impacted at Siguiri, due to a ramp-up of a new plant; in Brazil, due to regulatory stoppages; in South Africa, due to power interruptions and seismicity and at Geita, which underwent scheduled maintenance of its mill.
Moving into the second quarter and for the remainder of the year, both production and costs are set to improve, said the company.
