AngloGold Ashanti Limited
AngloGold Ashanti Limited
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(CORONAVIRUS)
The geographical diversity of its asset portfolio and multiple cashflow streams have helped AngloGold Ashanti maintain its credit rating as it emerges from the initial crunch of coronavirus restrictions.
Easing COVID-19 restrictions have enabled international miner AngloGold Ashanti to resume operations at its mines in Argentina, Brazil and South Africa.
Its 92.5%-owned Cerro Vanguardia in Argentina, suspended since March 21, has ramped up to capacity since April 6 initially processing stockpiles.
At its wholly owned Serra Grande underground complex in Brazil, AngloGold has been ramping up production since April 5 after measures taken by local authorities enabled it to end the suspension that began on March 27.
International miner AngloGold Ashanti has put a figure of 30,000-40,000oz on the anticipated impact of quarantines, lockdowns and suspensions affecting its operations in Argentina, Brazil and South Africa due to COVID-19 pandemic measures.
The loss of production represents less than 2% of the annual production from AngloGold’s diversified portfolio of 14 assets in nine countries.
Despite the forecast losses, AngloGold says it’s currently on track for the FY2020 production guidance of 3.05-3.3Moz announced in Feb.
AngloGold Ashanti confirmed its South African operations - including the Mponeng mine, Mine Waste Solutions and surface rock-dump processing sites – will go to care & maintenance from midnight on March 26 under the nationwide COVID-19 lockdown ordered by President Cyril Ramaphosa.
The lockdown is scheduled to last for 3 weeks. AngloGold is working on plans aimed at regaining lost production once operations resume.
Country-wide restrictions on travel and border closings have resulted in the suspension of mining activities until the end of March of operations at AngloGold Ashanti’s 92.5%-owned Cerro Vanguardia mine in Santa Cruz province, Argentina.
AngloGold’s only Argentinian mine produced 219,000oz gold at AISC of $US859/oz in FY2019 and is scheduled to account for 6% of FY2020 output.
Rescuers have located the bodies of three miners killed in a rockfall about 3.5km below the surface that followed a magnitude 2 earth tremor at AngloGold Ashanti’s Mponeng gold mine 75km SW of Johannesburg in South Africa.
Four other miners were rescued with non life-threatening injuries after the fall of ground on Thursday.
Higher gold prices and improved efficiencies have helped international major AngloGold Ashanti meet guidance on key operating metrics for the seventh straight year and nearly double free cashflow to $US127M in FY2019.
South African miner Harmony Gold sees potential to improve overall recovered grades and cashflow margins in its $US300M to acquire the Mponeng underground gold mine, Mine Waste Solutions retreatment business and surface rock dumps processing business from AngloGold Ashanti.
CEO Peter Steenkamp says the acquisition adds about 350,000oz to Harmony’s annual gold production and expands its South African reserves by 8.27Moz while improving its portfolio balance between underground and surface operations.
South African-based global miner AngloGold Ashanti has completed the divestment of its homeland assets with agreement on a cash and deferred payments transaction worth about $US300M with Harmony Gold Mining.
The sale includes the Mponeng project in the West Wits mining district, the world’s deepest operating gold mine, its Mine Waste Solutions retreatment business and a business processing surface rock dumps.