AngloGold headline earnings rocket
04 May 2007
In what is traditionally a challenging quarter for South African gold companies, we have delivered results close to our market guidance
South African miner AngloGold Ashanti (ANG) reported adjusted headline earnings of US$97m in the quarter ended March compared with $46m in the previous quarter, which was affected by once-off accounting adjustments.
Adjusted headline earnings per share amounted to 249 cents - or 34 US cents - compared with 124 cents, or 17 US cents in the December quarter.
Operational performance saw production down 10% to 1.33Moz compared with the prior quarter, primarily as a result of the year-end break and associated fewer production shifts in South Africa and Mali during the first quarter, the group said.
Total cash costs for the company were 7% higher at $332/oz and were also affected by a reduction in by-product revenue from uranium in South Africa and to a lesser extent, sulphuric acid in Brazil.
The company continued to deliver into maturing hedge contracts, reducing the hedge delta by 570,000 ounces to 9.59Moz, despite a spot price that was $27/oz higher at the close of the quarter. The price received increased 4% to $602/oz, or 7% below the average spot price, it said.
AI
