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Johannesburg - AngloGold Ashanti [JSE:ANG], the world’s third-largest producer of the metal, returned to profit in the fourth quarter as costs declined.
The company’s adjusted headline earnings were $40m in the quarter ended December 31 from a loss of $52m three months earlier, the Johannesburg-based company said in a statement on Monday. Production from continuing operations climbed 4.4% to 997 000 ounces.
“The fourth quarter of 2015 saw a robust operating and financial performance, with the continued focus on fundamental cost management aided by weakening currencies across key jurisdictions,” AngloGold said in the statement.
“Production was ahead of guidance and total cash costs were below guidance resulting in strong free cash-flow generation and a marked reduction in net debt, despite the lower gold price.”
The company made a full-year net loss of $73m in 2015, compared to a
net loss of $79m the previous year.
Adjusted
headline earnings were $49m in 2015, compared to a $1m
loss the prior year, the company said.
Production was 3.95 million ounces with all-in sustaining costs at $910/oz, 11% lower than the previous year. The company sees production in 2016 at 3.6 million ounces to 3.8 million ounces.
AngloGold has been cutting costs and selling assets in the last 12 months as it sought to lower its debt for a second year following the plunge in gold in 2013. The company bought back $810m of bonds last year after selling its Cripple Creek & Victor mine to Newmont Mining and has recently been boosted by gold’s 16% gain this year.
