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Global gold mining company AngloGold Ashanti has reported an improved first-quarter cash flow from operating activities as key mines delivered solid performances, despite it losing 11,000 ounces of production due to coronavirus affecting its operations.
With operations in Brazil, Argentina and South Africa coming to a halt, total production fell to 716,000 ounces in the three months to March 31 from 752,000 ounces in the same period last year.
The company however reported strong performances from its Kibali, Geita and Iduapriem mines which are situated in Congo, Tanzania and Western Ghana respectively.
The miner withdrew its annual production guidance in March.
However, first quarter free cash flow before investment in growth projects rose 231 per cent year-on-year to $94m (€86m, £75m). Cash flow from operating activities rose by 227 per cent from $67m to $219m over the same period.
AngloGold has resumed operations at affected mines, with South African mines able to produce at 50 per cent capacity after the government lifted some lockdown measures.
The company also said it secured an additional $1bn credit facility to supplement cash on hand of around $1.1bn as it bolstered liquidity to withstand any potential disruptions from the COVID-19 crisis.
Adjusted earnings before interest, tax, depreciation and amortisation increased 54 per cent year on year to $473 million, compared with $307 million in the same quarter last year.
The company has also taken steps to limit the impact of COVID-19 on its operations by building inventories of critical spares and ore stockpiles to improve the ability to respond to operational disruptions.
It has also implemented innovative relief interventions across all host countries, working closely with governments, peers, and communities to help slow the spread of the deadly virus.
