AngloGold Ashanti reaches loan deal

Johannesburg - AngloGold Ashanti [JSE:ANG] has secured a temporary relaxation in a financial ratio covenant on its revolving credit facilities in the face of volatile market conditions.

The gold producer said on Wednesday it had received consent from two banking syndicates providing the facilities to loosen the net debt-to-EBITDA ratio to a maximum of 4.5 from 3.

"The decisive steps were taken to reposition the company to weather a lower gold price environment," the company said in a statement.

The agreement is for the next two testing periods - December 31, 2013 and June 30, 2014 - after which this financial covenant would revert to 3, the company said.

South African gold producers are facing a perfect storm as prices slide and costs soar while workers are demanding big rises in pay.