| AngloGold production rises 4.6 per cent, exceeding forecasts | Send to a friend |
| Thursday, 12 August 2010 21:37 |
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AngloGold Ashanti Ltd, South Africa’s largest producer of the metal, said second-quarter output rose 4.6 per cent, exceeding company forecasts. Production climbed to 1.13 million ounces at a cost of $617 an ounce, from 1.08 million ounces at $619 in the prior quarter, the Johannesburg-based company said today in a statement. That beat AngloGold’s May 7 forecast of 1.08 million ounces at $650. South African gold producers are seeking to boost output to benefit from a rally in prices, which advanced 13 percent in the first half. AngloGold, which also operates in the Democratic Republic of Congo, Guinea and Australia, expects gold to sell at $1,050 to $1,200 an ounce, Chief Executive Officer Mark Cutifani said today on a conference call, without giving a timeframe. The company’s South African unit increased output by 16 per cent to 447,000 ounces in the quarter and reduced costs by 11 per cent, while the Americas division raised output by seven percent to 221,000 ounces at a cost of $416 an ounce, AngloGold said. The company plans to cut South African costs by 10 per cent this year even as power prices may more than double by 2012. The gold producer also today reported a second-quarter net loss of 1.36 billion rand ($190 million), compared with a 1.15 billion-rand profit in the previous quarter, reflecting a hedging loss. South African analysts compare quarters sequentially rather than year-on-year. “This is purely a non-cash, accounting item simply because the hedge book has been translated at a higher price than the previous quarter,” Chief Financial Officer Srinivasan Venkatakrishnan said in an e-mailed statement. Earnings excluding one-time items more than doubled to $129 million from $61 million, the company said. AngloGold has been reducing the size of its hedge book so shareholders can benefit from gold’s rally, with commitments down by 330,000 ounces to 3.22 million ounces over the period, resulting in a gold price received of 8.6 per cent below the spot price, it said. AngloGold declined 0.7 per cent to 311.98 rand in Johannesburg trading as of 9:42 a.m. local time. AngloGold forecasts third-quarter output at 1.15 million ounces, with costs rising to $645 an ounce because of annual wage increases and winter power-tariff adjustments in South Africa. Gold Fields, Africa’s second-largest gold producer, on August 5 said quarterly production rose 13 per cent to 898,000 ounces. AFP Add this page to your favorite Social Bookmarking websites           |
