AngloGold CEO announces a return to profit in Q4
AngloGold Ashanti, the world’s third-largest gold producer, returned to profit in Q4 of 2015 and delivered a solid operating and financial performance for the year.
Srinivasan Venkatakrishnan (pictured), AngloGold CEO, said:
"We've again shown consistency in hitting our production guidance, beating cost estimates, delivering free cash flow and delivering a sharp reduction in net debt levels. We achieved all of that despite lower gold prices."
The company's adjusted headline earnings were $40 million in the quarter ended 31 December, from a loss of $52 million three months earlier. Free cash flow of $141 million was recorded for the full year, compared with the outflow of $112 million the previous year, despite lower output and a weaker gold price.
Cash inflows from operating activities of $1,139 million for the year ended 31 December 2015 were only seven percent lower than the $1,220 million achieved in the previous year, despite an eight percent decrease in gold price received and an 11 percent decrease in production (including discontinued operations).
According to Venkatakrishnan, targets for 2016 include improving performance at the company's South African operations, including a ten percent increase in production; coming up with a development plan for its Obuasi mine in Ghana with a joint-venture partner,; and brownfields exploration in Mali, Guinea and Australia.