AngloGold Ashanti registered US$203 million profit in the first quarter of this year, driven by the higher gold price, as the company continued its reinvestment programme aimed at completing the redevelopment of the Obuasi gold mine.
This will add new gold reserves across its portfolio.
The US$203 million earnings or 48 cents a share is compared to US$143m, or 34 US cents per share, in the first quarter of 2020.
Adjusted net debt declined by 43% year-on-year to US$908m in the first quarter of 202, from $1.60 billion in the first quarter of 2020.
“We continue to make progress in delivering on our strategy,” Interim Chief Executive Officer, Christine Ramon said.
“Our balance sheet remains in a solid position and Obuasi is making steady progress to completion”
This year and next will be key investment years for AngloGold Ashanti as it increases production from brownfields projects and builds on strong reserve additions from exploration in 2020, to increase its overall reserve base and the life of its mines.
The company currently expects to meet its guidance for 2021.
Construction at the Obuasi Redevelopment Project, which will transform the 20 million ounces highgrade gold ore body, initially placed on care and maintenance in 2016, into a top-tier gold producer, achieved 97% completion by the end of March this year.
Production from the mine rose 53% to 46,000 ounces in the first quarter of 2021, from 30,000 ounces the prior quarter.
Production for the first quarter of 2021 was 588,000 ounces at a total cash cost of $999 per ounce, compared with 630,000 ounces at a total cash cost of $773 per ounce from continuing operations in the same period in 2020.
The company said solid production performances at AGA Mineração, Serra Grande, Siguiri and Obuasi were offset by declines at other mines in the portfolio.
In the first quarter of 2021, covid-19 accounted for an estimated 4,000 ounces of lost production and an estimated $29 per ounce of all-in sustaining costs.
The Brazilian operations and Obuasi mine were most affected by the pandemic during the first quarter, with high rates of absenteeism affecting productivity in Brazil and ongoing challenges encountered in the rotation of expatriate workers from Australia to Ghana.
In the first quarter of 2021, total cash costs increased mainly as a result of lower grades and the drawing down on ore stockpiles at some of the operations while waste stripping and underground development progressed, as well as inflationary pressures recorded across most of the portfolio.
Safety
Regrettably, one fatality occurred in February 2021 when a miner at the Serra Grande mine in Brazil was fatally injured in a fall-of-ground related incident during blasting preparation activities.
AngloGold extended its heartfelt condolences to the family and loved ones.
The company has been implementing a revitalised safety strategy across the business, with particular focus on the critical controls needed to eliminate what are called ‘high consequence, low frequency’ events.
Latest Stories
-
PSG clinch Ligue 1 title after Lyon’s win over Monaco
32 mins -
Guinness Ghana sets the pace at Ghana Beverage Awards with six awards
52 mins -
Burkina Faso suspends BBC, VOA radio broadcasts over killings coverage
57 mins -
Nicole Kidman honoured with AFI Life Achievement Award
1 hour -
Brassier scores winner for Brest as they edge Rennes to secure European football
1 hour -
Ejisu by-election: Akufo-Addo jabs independent candidate; refutes allegations to rig elections
2 hours -
‘What are the real causes of the erratic power outages?’ GUTA demands from ECG
2 hours -
Implementing ESG framework in Ghana’s energy sector for sustainability
2 hours -
CAFCC: Dreams FC exit competition after 3-0 defeat in Kumasi
2 hours -
The detrimental effects of political interference on Ghana’s electricity sustainability
2 hours -
Prof. Opoku-Agyemang’s appointment as running mate intimidates the NPP – Benjamin Quashie
3 hours -
Black Stars physical trainer dead
3 hours -
Bawumia to kick off nationwide campaign for Election 2024 tomorrow
3 hours -
GUTA charges ECG to provide ‘dumsor’ timetable for businesses to plan
3 hours -
Reason for training professional counsellors is to heal a hurting world – CCP president
5 hours