Cape Town - AngloGold Ashanti’s [JSE:ANG] focus on improving profit margins regardless of the lower metal price environment has paid off, as is evident from the company’s positive cash flow, said CEO Srinivasan Venkatakrishnan.
Speaking on the second day of the 2017 Mining Indaba, Venkatakrishnan said the company is one of only two majors in the global gold industry that hasn’t needed to issue equity since 2010.
“This is an exclusive club which is not easy to belong to.”
AngloGold’s net debt levels have fallen by over a third, due to the sale of a US asset and an improvement in cost management and operational performance, Venkatakrishnan said.
“Our CFO and finance team have done a splendid job in creating additional cash flow.”
He emphasised that AngloGold’s primary objective is not to increase productivity, but rather to enhance profit margins.
In addition, the company will focus on brownfield opportunities (growth at existing mine sites) to improve its production mix.
“We continue to look for ways in which we can unlock value through innovation, rather than capital investments,” Venkatakrishnan said.
He is also confident that the company can operate in any market, irrespective of metal prices. “We focus on the right things – safety, sustainability and improving margins and our strategy is suited to any market.”Read Fin24's top stories trending on Twitter: Fin24’s top stories