AngloGold Ashanti’s Iduapriem mine has recorded a 20% climb in production for the second quarter of 2015, a statement by the company has revealed.
According to the company, the Tarkwa mine’s production for the quarter climbed 20% to 48,000oz at a total cash cost of $1,029/oz compared to the previous quarter’s gold output of 40,0000oz at a total cash cost of $1,046/oz.
It also revealed that Tonnage throughput in the current quarter had stabilised following the SAG mill upgrade towards the end of last quarter.
“We intend to build on this important milestone as we evolve our plan to extract further operational efficiencies, in keeping with the group effort towards a leaner, more efficient company able to weather the current low gold price environment and thrive if the price recovers,” said Sicelo Ntuli, Managing Director of the Iduapriem Mine.
The statement also revealed that the Obuasi mine was currently in the Limited Operating Phase (LOP) after halting its primary and core underground operations at the end of 2014, in line with the government approved Amendment to the Programme of Mining Operations (APMO).
It further noted that the advent of the LOP in December 2014 resulted in the laying off of 4,762 employees at a total cost of $240m.
The core elements of the LOP phase, the company said, included legacy environmental clean-up works, which during the quarter produced 14,000oz from retreatment of old tailings.
It stated that the Obuasi deeps decline development and the resource enhancement drilling programme were on track, while the feasibility study remains on course with current optimisation to inform the investment case for a simpler, modern underground mechanised mine.
“This is about ensuring that we have a sustainable and profitable operation that benefits all of its stakeholders. Obuasi has a world-class ore body, but we need to reconfigure the entire mine which comes at a significant capital reinvestment cost and establish a new operating culture to make it a sustainable business for the long-term”, said Mark Morcombe, the Senior Vice President of Obuasi Operations.
On the international front, AngloGold Ashanti says it has generated $71m of free cash flow in the second quarter with production and costs beating guidance on the back of another strong performance from its international mines and a recovery from its South African operations.
Production was 1.007Moz at a total cash cost of $718/oz in the three months to June 30, 2015, compared with 1.098Moz at a total cash cost of $833/oz in the second quarter of 2014. The result compared with guidance of 960,000oz to 1Moz at $770/oz to $820/oz.
Despite a depressed gold price environment, the company revealed that its focus on tight cost control, portfolio improvements and relentless operational excellence, has ensured it continues to lead an effort across its 19 mines to improve margins.
