AngloGold Ashanti said costs improved in the first quarter and all aspects of full-year guidance remained on track, as the Company started a process to review divestment options for its South African assets.
Production for the three months ended 31 March 2019 was 752,000oz at an average total cash cost of $791/oz, compared to 824,000oz at $834/oz during the first quarter of last year.
All-in sustaining costs from these operations fell 2% to $1,009/oz over the same period. The company delivered a solid Adjusted EBITDA margin of 37%, despite a lower gold price and marginally lower production from certain assets, which it had flagged earlier in February.
AngloGold Ashanti is streamlining its portfolio to ensure greater management focus and to concentrate its capital on projects delivering the highest returns. The Company, which today said it started a process to review divestment options for its South African assets, already has processes underway to find buyers for its holdings in the Cerro Vanguardia mine, in Argentina and the Sadiola mine, in Mali.
“Our priorities are to safely improve margins, and to ensure we increase long-term value for our stakeholders,” Chief Executive Officer Kelvin Dushnisky said. “We’re working hard on both fronts - driving fundamental cost improvements through investment and efficiency initiatives, and ensuring we have a fit-for-purpose portfolio.”