South-Africa-based bullion producer AngloGold Ashanti Limited (ASX:AGG) is pushing ahead with cutting costs, having reported a 22 per cent drop in first quarter costs and 17 per cent jump in production.
The company says it has taken decisive steps to adapt to the sharp decline in the gold price and more volatile market conditions.
AngloGold has more than halved corporate and exploration costs and says it is on track to realise its targeted $500 million in annualised operating cost savings by the end of this year.
The world’s third-largest gold producer says these actions have not compromised its long term outlook for the business and it continues to invest in the expansion of its projects.
AngloGold has also flagged a potential restructure at the loss-making Obuasi mine in Ghana and stated its commitment to doing all it can to stop the current cash outflows and define a sustainable future.
AngloGold Ashanti booked a net loss of almost $2.1 billion in the first half of the 2013 calendar year.
