AGA’s Americas region produced 181koz gold

AngloGold Ashanti has reported its Americas region produced 181,000oz gold at a total cash cost per ounce of $674/oz for the third quarter ended 30 September 2020, compared to 179,000oz at a total cash cost per ounce of $782/oz for the third quarter ended 30 September 2019.

The region’s AISC was $963/oz for the third quarter ended 30 September 2020, compared to $1,118/oz for the third quarter ended 30 September 2019.

In Brazil, AGA Mineracao’s production was 12% higher year-on-year at 103,000oz at a total cash cost per ounce of $683/oz for the third quarter ended 30 September 2020, compared to 92,000oz at a total cash cost per ounce of $847/oz for the same period last year.

Production was higher mainly due to 19% higher tonnes treated at Cuiaba, which was partially offset by lower recovered grade. Costs were favourably impacted year-on-year due to higher gold production, a weaker exchange rate and lower acid production costs, partially offset by higher inflation (mainly due to services, spare parts, fuel and power and mine contractors) as well as higher royalties paid.

On a quarter-on-quarter basis, AGA Mineracao’s production improved by 36%, with total cash costs per ounce improving by 21%.

At Serra Grande, production was 31,000oz at a total cash cost per ounce of $610/oz for the third quarter ended 30 September 2020, compared to 31,000oz at a total cash cost per ounce of $760/oz for the same period last year.

Production was stable year-on-year, as higher tonnes treated offset the lower recovered grade. Costs were 20% lower compared to last year, favourably impacted by an improvement in efficiencies, a weaker exchange rate and a favourable movement in stockpiles, partially offset by higher inflation (mainly due to services and power) as well as higher royalties paid.

In Argentina, Cerro Vanguardia produced 47,000oz at a total cash cost per ounce of $692/oz for the third quarter ended 30 September 2020, compared to 56,000oz at a total cash cost per ounce of $686/oz for the same period last year.

Production was 16% lower year-on-year due to lower underground ore throughput as a result of limitations imposed on the site by COVID-19, and the impact of lower grades, in line with the life-of-mine plan.

Costs were marginally higher year-on-year mainly due to salary increases, and higher royalties. These costs were partially offset by higher by-product income derived from a higher average silver price, weaker exchange rate and favourable efficiencies mainly derived from lower consumption of energy, maintenance services, explosives, other materials and spare parts.

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