AngloGold profit more than doubles

Comment on this story
AngloGold-Srinivasan Venkatakrishnan Independent Newspapers. AngloGold Ashanti chief executive Srinivasan Venkatakrishnan.

Johannesburg - AngloGold Ashanti, the world’s third-biggest gold producer, said first-quarter profit more than doubled after capital spending dropped 43 percent.

Adjusted earnings excluding one-time items were $119 million in the three months ended March 31, compared with $45 million in the previous quarter, the Johannesburg-based company said today in a statement.

Capital expenditure dropped to $274 million in the period, from $477 million.

AngloGold, with 21 operations in 11 countries, has outperformed larger rivals Barrick Gold and Newmont Mining in the past year as it reduced costs at its corporate office while increasing production with two new mines in Australia and the Democratic Republic of Congo.

Even so, the company has yet to reinstate the dividend that it cut in August in response to a gold price that is 23 percent lower than at the beginning of 2013.

“Our operations have delivered another strong performance and we continue to manage costs aggressively,” chief executive Srinivasan Venkatakrishnan said in the statement.

The company produced 1.05 million ounces in the quarter compared with 1.22 million ounces three months earlier.

It received an average gold price of $1,290 an ounce, 1.5 percent more than the earlier period.

AngloGold forecast output of 1.02 million ounces to 1.06 million ounces for the quarter ending in June, it said. - Bloomberg News

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines