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AngloGold Ashanti beats Q2 production targets; repeats 2012 guidance

Published: 03:16 06 Aug 2012 EDT

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AngloGold Ashanti (LON:AGD) managed to beat its production targets in the second quarter, while making solid progress with its key growth projects.

The mining giant produced 1.07 million ounces (Moz) of gold in the June quarter compared with its guidance of 1.04 Moz, while production costs amounted to US$801 per ounce - better than the projected range of between US$840 and US$845 per ounce.

However, earnings fell to US$253 million from US$342 million a year earlier due to higher exploration and corporate expenditures.

The better than expected results were largely due to strong performances from the Continental Africa and Americas regions, as well as fewer safety-related production stoppages in South Africa.

The group also told investors that the expansion of the Cripple Creek & Victor mine in Colorado, the development of the Kibali and Mongbwalu mines in DR Congo and the new Tropicana mine in Western Australia all remain on track.

“It was a strong operating quarter and we've kept our projects firmly on track,” said chief executive of Anglogold Mark Cutifani.

“We've been driving this business hard to sustainably deliver industry-leading returns and we're continuing on that path.”

AngloGold left its full year production guidance unchanged at 4.3-4.4 Moz at a total cash cost of US$780-US$805 per ounce.

 

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