Data provided by iNet BFA
Loading...
See More

Anglo managers facing the axe

Aug 07 2013 12:44 Reuters

(Shutterstock) (http://www.shutterstock.com)

Company Data

ANGLOGOLD ASHANTI LIMITED [JSE:ANG]

Last traded 179.76
Change -1.99
% Change -0.01
Cumulative volume 321184
Market cap 72.53bn

Last Updated: 02/09/2014 at 04:25. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Anglo workers facing the axe

No quick fix for Anglo's new boss

Motlanthe upbeat on mine rescue talks

Amplats warns on unrealistic wage demands

Gold sector pay talks continue

AngloGold appoints new CFO

 
Johannesburg - AngloGold Ashanti [JSE:ANG], the world's third-largest bullion producer, plans to cut about 2 000 management jobs, or about 40% of its management positions, to reduce costs chief executive Srinivasan Venkatakrishnan said on Wednesday.

Venkatakrishnan told a media conference the job cuts are part of a larger plan aimed at saving the company as much as $482m next year.

AngloGold Ashanti reported a swing to a loss in the second quarter and scrapped its quarterly dividend payment as it tailored its business to survive the low gold price.

Spot gold prices have declined 25% this year, forcing producers to write down assets and pushing smaller mining companies to the brink of closure.

"While we remain positive on the prospects for the gold price in the long term, we've taken the decision to prepare our business for a volatile gold price environment where we believe there may be downside risk in the medium term," said Venkatakrishnan.

The miner has global operations, and posted an adjusted headline loss of 35 US cents in the April to June period compared to earnings of 29 US cents in the previous three months as it wrote down ore stockpiles on a falling gold price.

It scrapped its quarterly dividend payments because of the volatile environment and said it would review its policy at the year end with a view to restating a twice-yearly payout.

Production rose 4% to 935 000 ounces in the quarter, but the company reduced its 2013 target to between 4 and 4.1 million ounces after revising its mine plans.

Like many South African miners, AngloGold has been weighed down by rising production costs and labour disputes as well as falling commodity prices.

South Africa accounts for around 40% of AngloGold's global output and the company's new chief executive Srinivasan Venkatakrishnan has wasted no time removing marginal ounces and digging out free cashflow generation.

"We're phasing some of our expenditure on projects in South Africa and have reduced this year's total capital budget by about $150m, to $1.95bn," said Venkatakrishnan.

AngloGold's former financial director Venkatakrishnan, who took over from Mark Cutifani in May after Cutifani joined Anglo American as chief executive, is aiming to more than halve corporate costs from their 2012 levels.


 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
21 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...