Video: Junior market dominated by ‘the lame, the halt and the blind,’ says Rule
Over two-thirds of today’s junior miners are essentially worthless, says resource speculator Rick Rule.
South African AngloGold Ashanti (JSE:ANG) (NYSE:AU), the world’s third-biggest producer of the precious metal, said Monday it saw cash flow and production jump in the three months to September 30.
After suffering heavy losses in its home market, the company said it would restructure its South African mines in the second-half of this year.
Free cash flow for the three months ended Sept. 30 was $88 million, AngloGold said, compared with $41 million at the end of the second quarter.
Gold output increased 11% in the third quarter of the year to 997,000 ounces, compared to the 900,000 ounces it produced a year earlier.
The Johannesburg-based gold miner noted all-in sustaining costs remained unchanged at $1,071 an ounce, but the its net debt increased 4.6% to $2.06 billion.
After suffering heavy losses in its home market, the company had said in June it would restructure its South African mines, which could lead to 8,500 workers, or around 30% of its workforce, being laid off.
Last month, AngloGold sold its Moab Khotsong mine as well as Kopanang Mine and the West Gold Plant for a total $307 million. Once those transactions are complete and the loss-making TauTona mine is placed on care and maintenance, the company said an estimated 13% of its total production would come from its remaining operations in South Africa.
