HomeGoldAngloGold earnings and production down

AngloGold earnings and production down

AngloGold’s Geita
gold mine in Tanzania
Johannesburg, South Africa — MININGREVIEW.COM — 10 May 2010 – AngloGold Ashanti “’ Africa’s top gold producer “’ has posted first-quarter adjusted headline earnings of US$61 million (R457 million), after a strong performance from its mines in Tanzania and the Americas helped offset seasonally lower production from South Africa.

“Our operations in Brazil and Argentina had another strong quarter and the turnaround progress in the U.S. and Tanzania was also very encouraging," CEO Mark Cutifani said. ”Our focus now is to build on those performances and improve the contribution from our South African division.”

A statement issued by the company here said production was 1.08Moz at a total cash cost of US$619/oz in the three months to 31 March2010, compared with production the previous quarter of 1.18Moz at US$598/oz, and guidance of 1.07Moz at US$655/oz issued by the company in February.

Adjusted headline earnings were US$61 million, or 17 cents a share in the first quarter, given seasonally weak production at the South African operations following the December holiday shutdown. This compares with fourth-quarter profit of $228 million, or 62 cents a share, which was boosted by a once-off foreign exchange gain.

Negotiations with the Republic of Congo were successfully concluded during the quarter, prompting the initiation of a pre-feasibility study for the proposed Mongbwalu mine in the country’s northeastern Ituri region.

Production in the second quarter is anticipated to be similar to that of the first quarter at a total cash cost of US$650/oz. This accounts for a previously announced interruption at the Ghanaian operations to implement a revised water management strategy and tailings facility upgrade, as well as a planned decline in output from Sunrise Dam in Australia. Full-year guidance is maintained at 4.5Moz to 4.7Moz at a cash cost of US$590/oz to US$615/oz