[ad_1]
AngloGold Ashanti has stated that it is on track to meet its cost and production target for this year, with the Obuasi mine expected to produce 400,000 ounces of gold next year.
Both the Obuasi and Iduapriem mines are expected to contribute significantly to their performance.
The mining giant said in a circular to investors and the general public that it is on track to build a solid free cash flow of $ 516 million in the first nine months of this year, and is expected to publish its strongest financial performance. in almost a decade. .
“AngloGold Ashanti has strengthened its balance sheet by reducing loans, increasing liquidity and extending the average maturity of its debt by issuing a 10-year, $ 700 million bond with a 3.75% coupon, the lowest ever. accomplished.
“The Company is on track to build on strong free cash flow of $ 516 million in the first nine months of the year and is expected to post its strongest annual free cash flow performance in nearly a decade. Last month, the Company announced that it will double its payment ratio to 20% of free cash flow, before accounting for growth capex, ”he said.
Additionally, he said this will support a much higher dividend payment year over year.
“Improving direct returns to shareholders in a sustainable manner is central to AngloGold Ashanti’s capital allocation framework and a key strategic priority for the Company. Adjusted net debt is expected to fall further by year-end after nearly halving to $ 875 million in the nine months to September 30, 2020. “
AngloGold Ashanti also said that sustainable mining remains the foundation of its strategy as it will continue to prioritize local procurement and employment from host countries and communities.
Obuasi and Iduapriem operations
On its operations in the country, he said that the Obuasi Redevelopment Project in the Ashanti region, which sits on 31 million ounces of gold, is still on track to produce 4,000 tons per day.
“The Obuasi Redevelopment Project, which sits on Obuasi’s 31Moz mineral resource, is on budget and on track to increase at a steady state mining rate of 4,000 tonnes per day. The mine is expected to reach its maximum production rate in the second half of 2021, ”the circular emphasized.
At Iduapriem, in the western region, he said studies show the mine’s life span will be extended by nearly a decade.
Impact of Covid-19 on business
The mining giant said AngloGold Ashanti has quickly adapted to the COVID-19 pandemic, while doing its part to contribute to global efforts to stop the spread of the virus and provide public health and economic relief to local communities.
“Despite the challenges posed to the business, the pandemic has demonstrated AngloGold Ashanti’s social and sustainability capabilities, highlighting the strength of local participation in its global assets, relationships with host governments and communities, and the benefit of its diverse portfolio that supported the business during stoppages. All this is testimony to the quality of the people in the business and their commitment to its values ”, he emphasized.
The price of gold has seen a massive jump this year due to the covd-19 pandemic.
AngloGold Ashanti share is currently selling for ¢ 37 GH per share on the Ghana Stock Exchange.
