AngloGold Ashanti's Headline Earnings Spiked in Q1

SEATTLE (Scrap Monster): AngloGold Ashanti reported surge in Q1 2021 headline earnings to $203 million or $0.48 per share, mainly driven by higher gold prices. This compares with o $143 million or $0.34 per share, in the first quarter of 2020. The company noted that the redevelopment of the Obuasi gold mine continues to make steady progress to completion.

According to the company press release, the adjusted net debt of the company recorded significant decline by 43% over the previous year to $908 million in the first quarter of 2021 from $1,606 million in the first quarter of 2020. The adjusted EBITDA increased marginally by 3% to $449 million, at a strong adjusted EBITDA margin of 47%.

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The quarterly production totalled 588,000 ounces at a total cash cost of $999 per ounce. Incidentally, the production from Obuasi mine surged higher by 53% to 46,000 ounces in Q1 2021. The construction works reported 97% completion by end-March this year.

AGA Mineração, Serra Grande, Siguiri and Obuasi mines reported solid production performances, whereas the remaining mines witnessed production declines.

Commenting on the results, Christine Ramon, Interim Chief Executive Officer stated that the company continued to make progress in delivering on its strategy. The balance sheet remains in solid position and it expects to meet its guidance for 2021, he added.