Gold miner AngloGold Ashanti Ltd (AU) Monday posted a six-fold sequential increase in adjusted headline earnings to $113 million as costs were better than guidance and the company made steady progress recovering from the strike action in South Africa in the last quarter of 2012.
Production was 899,000 oz at a total cash cost of $894 per oz, compared to 859,000 oz at $967 per oz in the previous quarter.
The company noted that about 20,000 oz was lost to a lightning strike which interrupted power to the West Wits operations, while a delay in commissioning of a new mill at Geita also cost some production.
Production in the second quarter is forecast at 900,000 oz to 950,000 oz at total cash cost of $900 per oz to $950 per oz. This considers the number of public holidays in South Africa as well as annual power tariff increases and the winter power tariffs charged.
According to the company, its two key new projects -- Tropicana in Australia and Kibali in the DRC -- are on schedule to pour their first gold by the end of the year adding half-a-million ounces of new production.
Newly appointed CEO Srinivasan Venkatakrishnan said, ''Our major projects remain on budget and on schedule to pour gold by year-end, improving the quality of the portfolio. Prudent capital allocation will drive our strategy to deliver profitable ounces and sustainable free cash flow, whilst maintaining a strong balance sheet."
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