) announced that its Kibali Gold Mine, a joint venture with
), has produced its first gold ahead of schedule and within
budget. AngloGold and Rangold hold a 45% stake each in the mine
and the remaining 10% stake is owned by Sokimo, a state-owned
Kibali, which is located in the Democratic Republic of Congo,
is a world-class gold mining asset, according to AngloGold. The
mine is expected to produce around 600,000 ounces (oz) of gold
from reserves of 11 million ounces (Moz) and resources of 21 Moz.
The Kibali mine is being developed in two stages, initially as
an open pit operation and then an underground mine which is
scheduled to access ore in 2015. AngloGold expects that gold
sales will start from the next month and is now focusing on
commissioning the rest of the metallurgical plant and the
hydropower stations as well as progressing with the underground
development. In 2014, the mine is expected to provide employment
to more than 2,500 people which will mainly include Congolese
AngloGold is aiming to reduce costs, optimize free cash flow
generation and enhance/maintain its margins and returns. The
company is also focusing on efficiency gains. AngloGold is
working towards realizing savings as well as sustaining capital
expenditure over the next several months. The company plans to
curtail those operations that do not yield higher returns.
AngloGold currently retains a Zacks Rank #3 (Hold).
Other companies in the mining industry with a favorable Zacks
Gold Fields Ltd.
Lake Shore Gold Corp.
). Both carry a Zacks Rank #2 (Buy).
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
RANDGOLD RSRCS (GOLD): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
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