Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
AngloGold Ashanti has placed its Córrego do Sítio (CDS) mine in Brazil on care and maintenance following a sustained period of poor production and costs that remain well above the gold price.
In the first six months of 2023, CDS produced 30,000 ounces at a total cash cost of $2,278/oz and an all-in sustaining cost of $3,031/oz.
CDS reported negative free cash flow of $30 million over that period.
The mine is AngloGold Ashanti’s smallest operation and produced 69,000oz in 2022 at a total cash cost of $1,946/oz and an all-in sustaining cost of $2,887/oz.
On Friday, AngloGold also announced the appointment of Richard Jordinson as chief operating officer, effective October 1.
Jordinson joined AngloGold Ashanti in 2012 as general manager of Sunrise Dam, in Australia, where he was accountable for the mine strategy to transition the operation from open pit to large-scale underground operation.
Most recently he was senior vice president for AngloGold Ashanti’s Ghana-Tanzania business unit.
Jordinson will replace Marcelo Godoy, who since July has been the interim COO following the retirement of Ludwig Eybers, the company said.
