StockMarketWire.com - AngloGold Ashanti has posted adjusted headline earnings of $203m in the first quarter and boosted cash flow from its operations after eliminating its hedge book last year to reap the full benefit of record gold prices.
"The business is generating strong, steady cash flow now that we're capturing this higher gold price," Chief Executive Officer Mark Cutifani said. "We're now focused on driving operational improvements through the business and advancing our growth projects."
Cash flow generated from the company's operating activities during the first quarter was $513m. Net debt improved by another 15% to $1.1bn, demonstrating the improvement in AngloGold Ashanti's cash generation, even after taking into account its its capital expenditure requirements.
AngloGold Ashanti has made a significant new discovery beneath the current workings of its Sunrise Dam mine, which has the potential to yield between 2Moz-5Moz. Drilling at its Cerro Vanguardia mine in Argentina also provided a high-grade interception of gold and silver at a depth of 400 metres, some 200 metres beneath where the current mineralisation was previously thought to end.
At La Colosa, in Colombia, drill results continue to confirm confidence in the potential of the ore body.
