AngloGold Ashanti says its third-quarter free cash flow rises to $161m

Mining company, AngloGold Ashanti says it has a significant jump in free cash flow to $161 million in third-quarter 2016.

According to the miner, that further improves its net debt position despite a decline in ore grades at some of its operations and a challenging operating environment for its South African business.

In a press release copied to ghanabusinessnews.com, AngloGold Ashanti which which used to operate the Obuasi mine in Ghana, said its free cash flow was $161 million, before the $30 million once-off cost incurred for the early repayment of its high-yield bond, which is the company’s most expensive debt.

“The free cash flow generation for the three months through September 30 was a significant improvement on the $50 million outflow in the third quarter of 2015, and 49 per cent more than the $108 million generated in the first half of this year,” it added.

AngloGold Ashanti indicated that production in the third quarter was 900,000oz compared to 974,000oz in the third quarter of last year, which included a combined 32,000oz from Cripple Creek & Victor and Obuasi, which have been sold and idled respectively.

“Moab Khotsong, Mponeng, Iduapriem, Siguiri and Serra Grande delivered improved performances,” it said.

 It noted also that total output from South Africa dipped 7 per cent year-on-year to 235,000oz, mainly due to lower average recovered ore grades from underground.

“The company’s mines in South Africa faced stoppages following three fatalities in July,” it said.

 The company states that lower production from its International Operations of 665,000oz, compared with 702,000oz in the third quarter of last year, was mainly a result of lower ore grades as planned, at both Tropicana and Geita, as well as delays in accessing high-grade ore at its operation in Brazil.

By Emmanuel K. Dogbevi