AngloGold Ashanti remains optimistic about earnings despite stagnant production
JOHANNESBURG – AngloGold Ashanti said on Wednesday that it expected headline earnings for six months to June to be between US$111 million (R1.6 billion) and $129m, up from $99m for the comparative period.
The world's third-largest gold producer said that headline earnings per share for the period will be between 27 US cents and 31 US cents, up from 24 US cents last year.
AngloGold Ashanti said the expected overall increases in headline earnings were primarily due to the prior period retrenchment costs related to the restructured South African operations were not repeated in 2019, resulting in increased earnings of $22m, post-tax, or 5 US cents per share.
Last year, AngloGold Ashanti retrenched 2 000 workers in South Africa following the sale of the Kopanong and Moab mines and the closure of TauTona Mine.
The miner also said the interim earnings benefited from a Brazilian power utility legal settlement of $11m, post-tax, or 3 US cents per share received in April this year; and income from joint ventures, mainly Kibali, increased by $38m or 9 US cents per share.
These increases were partly offset by a decrease in net by-product revenue of $25m and an increase in environmental rehabilitation costs of $27m as a result of the adverse impact of lower risk-free interest rates used in determining the environmental rehabilitation obligations.
AngloGold Ashanti said production for the six months ended 30 June 2019 was expected to be 1.554 million ounces, down from 1.578 million ounces for the half year ended 30 June 2018.
The group said the process to streamline its portfolio continues with sales processes ongoing in South Africa, Mali and Argentina.
African News Agency (ANA)