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VENTURES AFRICA – JSE-listed gold miner, AngloGold Ashanti (AngloGold), has begun reversing nearly 10 years of dwindling gold production following significant capital investments made in previous years.
Srinivasan Venkatakrishnan (better known as Venkat), AngloGold’s CEO, said this reversal will allow the company to do away with minimal production without compromising a lot.
According to Venkat, the reversal was also a consequence of a decision taken last year by the company to change strategy just before global gold price hit a sharp plunge.
The main plan was to increase revenues and lessen overhead and operating costs.
In the three months to December 2013, AngloGold posted a 66 percent surge in earnings before costs from $327 million to $544 million.
AngloGold said production surged 18 percent in Q4 to December 2013, compared to the third quarter.
Ron Largent, the COO of AngloGold’s international operations, said the company was deepening its strategy of attaining more competencies this year.
Further production improvements are expected this year. Production is likely to increase to between 4.2Moz and 4.5Moz at a total cash cost of $750 per ounce (oz) to $790/oz, the company said.