AngloGold shares down after budget cut

Anglo American CEO Mark Cutifani. File picture: Reuters

Anglo American CEO Mark Cutifani. File picture: Reuters

Published Nov 8, 2012

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Shares in gold miner AngloGold Ashanti (ANG) fell over 1% on Thursday after the miner announced it cut its capital expenditure plans for 2012 by $200 million because of the illegal strikes.

At 10.36am‚ shares fell by 1.40% to R295.80 from its previous close of R300.00. Over the past 10 months shares have lost 21.84% in value and this year alone it lost 13.45%.

Earlier on Thursday‚ the miner announced the cut in its expenditure budget‚ to between R2 billion and R2.1 billion‚ was in order to keep its balance sheets flexible.

“It’s been a tough period for the industry here‚ but we’ve taken decisive action on a number of fronts to stay the course. Our major projects are on track and we’re making the decisions to ensure we maintain a lean‚ fit business that will continue delivering strong returns‚” AngloGold Ashanti Chief Executive Mark Cutifani said. - I-Net Bridge

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