HomeGoldAngloGold posts third quarter loss

AngloGold posts third quarter loss

AngloGold Ashanti
“’ suffers a third
quarter loss
Johannesburg, South Africa — MININGREVIEW.COM — 11 November 2010 – AngloGold Ashanti Limited “’ the world’s third-largest gold miner “’ has posted a third-quarter loss, largely hit by its hedge book buy-back, and warns that its full-year output will be at the low end of its forecast.

AngloGold ditched its hedge book to be able to sell gold at market prices, in order to boost its cash flow and profit margins, and to push ahead on some of its growth projects.

In a statement issued here, the company, which has operations across four continents, said output for the year would be 4.5Moz at a cost of US$635/oz, compared with its previous forecast of 4.5 to 4.7Moz, at a cost of US$590 to US$615/oz.

“Our operations are performing well and there’s a strong tailwind from the gold price,” CEO Mark Cutifani said in the statement.

“With the hedge book out of the way we can now capture the full gold price, which has the potential to further boost margins and increase cash flow,” he added. AngloGold reported an adjusted loss of 321 U.S. cents per share for the July to September quarter, missing the consensus forecast of a loss of 24 U.S. cents, and compared with adjusted earnings of 35 U.S. cents in the June quarter.

The company reported that third-quarter production had risen to 1.162Moz from 1.126Moz the previous quarter, and above its own forecast of 1.15 million ounces.

Total cash costs rose to US$643/oz from US$617/oz in the previous three months, but below its guidance of US$645/oz.