AngloGold Ashanti: Closing Yatela mine to erode profit

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AngloGold Ashanti’s second-quarter profit would be eroded by costs from closing its Yatela mine in Mali and reorganising operations in Ghana, it said on Friday. The changes would impact earnings, the gold producer said without giving figures. AngloGold would also provide for a $51 million (R536m) write-down on its 42.4 percent stake in Rand Refinery, which processes gold in South Africa. AngloGold was reducing costs and improving the overall quality of its portfolio after gold fell 28 percent last year. The firm had previously announced the closing of Yatela, and is building new mine infrastructure and reducing the workforce at its Obuasi mine in Ghana. Harmony Gold Mining, a partner in Rand Refinery, made a R125m provision, it said in a separate statement. Sibanye Gold, which also owns a stake in the refinery, would make a R316m provision. The provisions arose from a loan related to “challenges encountered in the implementation of a new enterprise resource planning system” at Rand, Sibanye said.. – Bloomberg

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