) announced that its Tropicana Gold Mine in Western Australia has
produced its first gold ahead of schedule and within budget. The
company announced that the new gold ounces delivered were below
its current average cost structure.
ANGLOGOLD LTD (AU): Free Stock Analysis
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The Tropicana mine is a joint venture between AngloGold Ashanti
and Independence Group. AngloGold owns and operates 70% of the
mine with Independence Group holding the remaining stake.
Production at the mine was initially scheduled to start in the
fourth quarter of this year.
With the discovery, development and the production at the mine,
AngloGold has achieved a significant milestone and remains
focused on providing employment as well as opportunities for
local businesses, with contracts worth over A$30 million ($28
million) a year awarded to Aboriginal businesses. The company is
also focused on finding additional mineralization close to the
plant, while testing the promising targets in its joint venture
Despite moving ahead of schedule, the estimated capital
expenditure for the project is unchanged at between A$820 million
($767 million) and A$845 million ($791 million). AngloGold is
aiming to achieve a production rate of between 470,000 to 490,000
ounces in the first three years. Cash costs for Tropicana are
estimated to be between A$590 ($552) and A$630 ($590) per ounce.
Recently, AngloGold's Kibali Gold Mine, a joint venture with
), also produced its first gold ahead of schedule and within
budget. Both Kibali and Tropicana mines are expected to produce
600,000 ounces of gold from next year. AngloGold will focus on
realizing about $460 million in combined savings from corporate
overheads and exploration activities in 2014, compared with 2012.
AngloGold currently retains a Zacks Rank #3 (Hold).
Other companies in the mining industry with a favourable Zacks
Gold Fields Ltd.
Lake Shore Gold Corp.
). Both carry a Zacks Rank #2 (Buy).