AngloGold Ashanti Limited
AngloGold Ashanti Limited
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Despite a rain-hit Q3 17, Australian gold prodn rose 2.5% to 299t in FY17, worth $16B.
One-offs send AngloGold to first half loss as it steps up capital investment to reduce costs and extend mine lives across its international gold asset portfolio.
Strong Q2 performance after a slow start has kept South African-based gold major AngloGold on track after producing 1.748Moz at AISC of $US1,071/oz for the June half (H1 2017), compared to 1.745Moz @ $911/oz in H1 2016.
One-off charges pushed AngloGold to H1 headline loss of $89M, from $93M profit a year earlier. Adjusted EBITDA was $610M (H1 2016: $781M).
FY guidance remains 3.6-3.75Moz @ $1,050-1,100/oz.
Ghana's 2017 gold output is likely to more that halve because of enforced bans on illegal small-scale mining that lifted production last year, but damaged the environment, Reuters reports.
Total gold output from Africa's 2nd largest producer was 4.1Moz in 2016, the highest level in nearly 40 years, up from 2.8Moz in 2015, with the small miners accounting for nearly a 1/3rd of that. However, the govt of President Nana Akufo-Addo, who took office in Jan, has temporarily banned artisanal mining.
International miner AngloGold warns it's facing a headline loss of $US80-98M in the June half-year (H1 2017).
The turnaround from its $93M profit in the corresponding period of 2016 is primarily due to one-off charges of $86M impairments against some South African assets, $47M for proposed retrenchments and a first-time provision of $46M for the likely settlement costs of long-running silicosis class actions.
AngloGold says stronger local currencies in South Africa and Brazil have also resulted in higher operating charges.
West Australian company Matsa has made a low-key transition to production with the start of trial mining in the North pit at its Fortitude gold project in Western Australia, with mining contractor Quadrio Earthmoving due to move from single to double shifts on July 31.
The ore will be trucked 35km north to AngloGold Ashanti's Sunrise Dam project for processing under an ore purchase agreement.
Exec chairman Paul Poli says Fortitude is expected to meet its 12,100oz production target and generate a $A5.2M cash surplus over 8 months.
South African-based global gold miner AngloGold is launching an international arbitration case against the Tanzania govt over the unilateral changes to national mining laws passed by parliament this month.
AngloGold says it's taking action in the UN Commission on International Trade Law challenging the impact of the significant changes on the mine development agreement for its flagship Geita mine.
AngloGold has awarded GR an EPC contract worth about $A31.3M to design and construct a new flotation and ultra-fine grind processing facility with associated services upgrades at its Sunrise Dam gold mine, 55km south of Laverton in Western Australia.
The contract is part of a brownfields upgrade of processing facilities within the processing infrastructure at the mine after more than 20 years of operations.
Work will begin immediately, with completion scheduled for June 2018.
International gold major AngloGold has launched formal consultation over the potential to reduce over 30% of its South African workforce in an attempt to turn around the performance of its loss-making operations.
The Johannesburg-based company says the proposed restructuring could impact 8,500 of its 28,000-strong workforce, including contractors.
Matsa has a buyer for trial mining production from its Fortitude gold project - and a potential longer-term processing partner - in AngloGold Ashanti, its near-neighbour in the Laverton region of Western Australia.
AGA will purchase the trial mine's entire estimated production of 185,000t @ 2.2g/t (12,100oz gold) for processing at its 3.8Mtpa Sunrise Dam mill 35km away.