AngloGold Ashanti CEO Srinivasan Venkatakrishnan. Picture: MARTIN RHODES
AngloGold Ashanti CEO Srinivasan Venkatakrishnan. Picture: MARTIN RHODES

ANGLOGOLD Ashanti deepened its full-year loss to $85m as gold output fell 11% due to safety stoppages, asset sales and suspensions.

AngloGold reduced its net debt during the year by a third to $2.19bn as it cut costs and generated positive free cash flow from its mines.

AngloGold posted an attributable net loss of $85m for the year to end-December compared with a $58m loss the year before.

Gold production fell to 3.947-million ounces for the year, compared with 4.436-million ounces, with the South African operations’ output declining by 112,800oz during the year due to safety-related stoppages.

AngloGold also mothballed its Obuasi mine in Ghana as it works on a fresh mining plan for the perennially underperforming mine.

AngloGold reported adjusted headline earnings of $49m versus a $1m loss a year earlier. The analysts look at this number and develop consensus forecasts around it, said a company spokesman.

Capital expenditure fell 29% to $857m and it had free cash flow of $141m compared with an outflow of $112m a year ago.

The gold price AngloGold received fell 8% to $1,158/oz. AngloGold had an all-in cost of $1,001/oz compared with $1,114/oz.

AngloGold sold its Cripple Creek & Victor mine for $819m, which it put towards reducing an expensive convertible bond.

"We've again shown consistency in hitting our production guidance, beating cost estimates, delivering free cash flow and delivering a sharp reduction in net debt levels," CEO Srinivasan Venkatakrishnan said. "We achieved all of that despite lower gold prices."

AngloGold forecast it would produce between 3.6-million and 3.8-million ounces in the coming year at an all-in sustaining cost of between $900/oz and $960/oz.