AngloGold shares down after budget cut

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%.

Anglo American CEO Mark Cutifani. File picture: Reuters. Credit: REUTERS

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