Cape Town - AngloGold Ashanti said on Monday it had more than trebled free cash flow generation in the first half and lowered net debt by almost a third as costs fell and the gold price rose.
The company said in a statement that free cash flow was up to $108 million for the six months to the end of June.
It said the improvement was driven by cost containment, weaker currencies in key operating jurisdictions, $33 million in interest savings and a 1 percent higher gold price received.
The gold miner cut net debt by 32 percent to $2.1 billion as at June 30 from $3.1 billion at the end of June last year.
“AngloGold Ashanti has delivered on a range of self-help measures over the past two years to reduce debt using internally generated funds,” the statement said.
The company has sold some mines, closed others and made significant reductions to all areas of cost “as it prioritises sustainable improvements to free cash flow and returns”.
Read also: AngloGold’s profit surges on price gains
“We will continue to push hard to improve operational and cost performance, as well as our overall balance sheet flexibility, regardless of the gold price environment,” CEO Srinivasan Venkatakrishnan said.
“Our focus remains to improve margins and grow cash flow and returns on a sustainable basis.”
Bloomberg on Monday reported the company saying it would consider resuming dividend payments next year after a four-year hiatus.
On August 1, AngloGold Ashanti completed the redemption of the remaining 8.5 percent, seven year bonds outstanding, at a total cost of the $503m, wiping out the company's most expensive debt.
AFRICAN NEWS AGENCY
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