Coupled with improved bullion prices, the bold cost cutting path which AngloGold Ashanti, the world’s third-largest producer, is now paying off, at least according to its fourth quarter results.
In spite of the “heroics”, the gold miner did not swim completely swim itself out of a sea of debt. It still posted a higher net loss for 2015, which widened from $39m to $70m annually, while revenue dropped from R5.1bn to $4.17bn in 2014.
In general the gold miner has slashed overhead expenditure since the end of 2012 by more than two-third. Gold prices have shed 35% of their price from 2011 hieghts.
South African miner, RandGold chickened out of a with AngloGold partnership in the Obuasi mine project in Ghana, after reconsidering its decision.