By Richard Adorsu-
NEW AFRICA BUSINESS NEWS (NABN) Accra- Ghana, AngloGold Ashanti bolstered its available liquidity to more the US$2bn, improved leverage and more than treble first quarter cash flow from operating activities as key mines delivered solid performances. However, free cash flow before growth capital increased 231% year on year to $94 million, the company said.
“Cash flow is strong, leverage is down, and all operations are running,” Chief Executive Kelvin Dushnisky said in a statement.
AngloGold has resumed operations at affected mines, leading with South African mines able to produce at 50% capacity after the government lifted an order for most underground mines and furnaces to be put on care and maintenance as part of a nationwide lockdown.
AngloGold has also benefited from strong bullion prices on rising demand for a commodity widely perceived as a safe-haven investment in times of economic and political instability.
The company said it had bolstered liquidity to $1.1 billion after redeeming a 10-year $700 million bond and securing additional credit facilities of $1 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 54% year on year to $473 million, compared with $307 million in the same quarter last year.
AngloGold said it had built inventories of critical spares and ore stockpiles to improve its ability to respond to operational disruptions and limit the impact of the Covid-19 crisis.
For New Africa Business News Richard Adorsu Reports, Africa Correspondent
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