Officials at South African major AngloGold Ashanti Ltd. have posted solid Q2 operating results amid potential savings and efficiency improvements up to $482 million in 2014 to improve operating margins.

Incoming CEO Srinivasan Venkatakrishnan “Venkat” has already announced his intention to cut corporate costs by more than 50% in 2014 from 2012 levels, while narrowing AngloGold’s focus on expensed exploration and evaluation to three core regions.

These elements of overhead—totaling $752 million in 2012—are expected to decline to between $270 million and $315 million next year. Cost improvements will be aided by Tropicana mine production in Australia, expected to start before the end of Q3 and the Kibali joint venture in the Democratic Republic of Congo (DRC), slated to pour its first gold ounce in Q4 2013.

“We have adopted a decisive response to this weaker gold price environment, focused on revenue enhancement and improving efficiencies,” Venkat said. “Our two important new mines are expected to contribute production next year below our current average cost, improving cash cost and cash flow.”

Production through Q2 was 935,000 oz at a cash cost of $898/oz, compared with 899,000 oz at $894/oz in Q1, and to AngloGold’s guidance up to 950,000 oz at total cash costs of $900/oz to $950/oz. Improvements stemmed from mine production in Africa and the Serra Grande in Brazil.

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