HomeGoldAngloGold's first quarter production drops

AngloGold’s first quarter production drops

One of the pits at
AngloGold’s Siguiri
mine in Guinea
Johannesburg, South Africa — MININGREVIEW.COM — 03 April 2009 – AngloGold Ashanti Limited – the world’s third biggest gold producer – expects its output during the first quarter of 2009 to be 2.5% lower than its previous guidance, partly owing to safety stoppages.

In a statement released here the company revealed that output in the quarter to end March was seen at 1.1 million ounces compared with the previous guidance of 1.13 million ounces – a drop which would impact on per unit cash costs during the quarter.

The group – which has 21 operations across four continents – also attributed the production downfall to a slower start-up in mines after the Christmas break, and to a plant breakdown at its Geita mine in Tanzania.

It said that all the issues at the affected mines had been resolved, and added that all other mines had either achieved or exceeded their targets set for the quarter.

AngloGold recorded strong performances from its Sunrise Dam project in Australia, Siguiri mine in Guinea and Ghana’s Obuasi mine, where the company said it was achieving its turnaround targets.

“We’ve successfully addressed a number of challenges in the first quarter, while continuing our drive to improve safety,” said CEO Mark Cutifani. “I’m confident that we remain well placed to meet our objectives for the year.”

The guidance for the full year of production was between 4.9 million and 5.0 million ounces at a total cash cost of $435 to $450 an ounce, based on a conversion rate of R9.75 to the dollar, and a fuel price of $50 per barrel. This remained unchanged.

In 2008, AngloGold produced 4.98 million ounces of gold from its operations – an estimated 7% of global production.