AngloGold Ashanti (NYSE: AU) Announces Record 2nd-Quarter Earnings on
Higher Production, Gold Price
(Thomson Reuters ONE) - JOHANNESBURG, SOUTH AFRICA--(Marketwire - July 31, 2009) - AngloGoldAshanti Limited (NYSE: AU) reported an 11% increase in second quarteradjusted headline earnings to a record, after improved performancefrom its Tanzanian and Ghanaian regions helped boost production.Adjusted headline earnings increased to $167m, or US47 cents a sharein the three months to 30 June, compared with $150m, or US42 cents,in the previous quarter."We saw a strong operating performance across most of the operationsand a nice sweetener from our received gold price," Chief ExecutiveOfficer Mark Cutifani said. "We're seeing the results of ourinterventions in the continued improvements at Obuasi and the earlysigns of a recovery at Geita are also very encouraging for us."AngloGold Ashanti's production during the period rose to 1.127Moz ata total cash cost of $472/oz, from 1.103Moz at $445/oz in the priorquarter. Higher production and lower costs were realised in SouthAmerica and in Africa, outside of South Africa.The company has appointed new management this year to oversee itsoperations in Ghana and Tanzania, part of its strategy to ensureappropriate skills at each level in the organization. Obuasi reporteda 10% rise in production to 101,000 ounces and a 16% drop in cashcosts to $589/oz, while Geita posted a 43% increase in production to63,000 ounces and a 14% decline in costs.The company's West Wits operations in South Africa raised productionby 7%, despite the large number of public holidays around Easter andthe general election. The Vaal River operations, however, reported a15% decline in output and a commensurate increase in costs, largelydue to safety-related stoppages.Eight of our colleagues tragically lost their lives across thecompany's operations during the quarter. This safety performance is amatter for concern and AngloGold Ashanti's management has intensifiedits efforts to improve overall safety across its operations.Interventions have been made with teams that have had the highestaccident rates to effect rapid improvements. A broader strategy tobetter the organisation's safety performance will be implemented inthe first quarter of 2010. It is important to note that AngloGoldAshanti's lost time injury frequency rate, a broad measure of overallsafety performance, declined 19% during the quarter to its lowestlevel ever. There have been no fatalities since June 2.The safety stoppages, combined with mill repairs in the first quarterat Geita and lower-than-anticipated recoveries from the Cripple Creek& Victor in the U.S., have necessitated the adjustment of full-yearguidance to 4.7Moz - 4.8Moz from the original target of 4.9Moz -5.0Moz. For the third quarter, production is estimated at 1.2 millionounces at a total cash cost of approximately US$530 per ounce,assuming an average rand exchange rate of R8.10 to the US dollar forthe quarter.The average price received during the quarter increased by 5% to$897/oz, achieving a 3% discount to the spot price.Following the successful issue of a five-year convertible bond andreceipt of the first tranche of the proceeds from the sale of itsBoddington stake, the company used $797m of its internal cashreserves to restructure its hedge book during July."We've worked hard to strengthen our balance sheet and that gave usthe flexibility to skin the hedge book by getting it well below oneyear's production," Cutifani said. "The market fundamentals areextremely robust for gold, so we decided to move aggressively soonerrather than later."The restructuring affected about 1.4 million ounces, reducing theoverall hedge commitment to 4.47 million ounces at July 25, less thanone year's production. The committed ounces are expected to declinefurther, to 4.1 million ounces by the end of 2009, a year ahead oftarget.The company now expects to achieve a 7% discount to spot gold pricesat $950/oz gold price, with the hedge bookreducing by approximately 800,000oz a year, until it winds up at theend of 2014.ContactsStewart BaileyMobile: +1 646 717 3978E-mail: sbailey(at)anglogoldashanti.comSicelo Ntuli+27 (0) 11 637 6339sntuli(at)anglogoldashanti.comAlan Fine+27 (0) 11 637 6383+27 (0) 83 325 0757afine(at)anglogoldAshanti.comJoanne Jones+27 (0) 11 637 6813+27 (0) 82 896 0306jjones(at)anglgogoldashanti.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 31.07.2009 - 09:50 Uhr
Sprache: Deutsch
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