AngloGold Ashanti Q3 Adj. EBITDA Climbs; Narrows FY Production View

(RTTNews) - AngloGold Ashanti (AGD.L, AU) Monday reported that its third-quarter adjusted earnings before interest, tax, depreciation and amortisation or adjusted EBITDA rose 36% to $395 million from $291 million last year.

Production in the third quarter was 900,000oz, compared to 974,000oz last year.

Total output from South Africa dipped 7% year-on-year to 235,000oz, mainly due to lower average recovered ore grades from underground. The Company's mines in South Africa faced stoppages following three fatalities in July.

AngloGold Ashanti's International Operations' production dropped to 665,000oz from 702,000oz last year, mainly a result of lower ore grades as planned, at both Tropicana and Geita, as well as delays in accessing high-grade ore at its operation in Brazil.

AngloGold Ashanti further announced a significant jump in third-quarter free cash flow to $161 million.

Chief Executive Officer Srinivasan Venkatakrishnan said, "We generated strong free cash flow in the third quarter, taking this year's cumulative free cash flow to nearly a quarter of a billion dollars, further reducing debt. Work is already well advanced to turn around our operating performance in the near term by improving volumes and accessing higher grades as per our plans, and over the medium term by investing in our low-capital, high-return brownfields projects."

The outlook for production for the full year has been narrowed but remains within the original guidance. The company now expects production between 3.6Moz and 3.65Moz, compared to previous estimate of 3.6Moz and 3.8Moz.