Wrap Text
ANG - Anglogold Ashanti - Profit buoyed by Strong Tanzania, Brazil
Performances
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number: ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI PROFIT BUOYED BY STRONG TANZANIA, BRAZIL PERFORMANCES
(JOHANNESBURG) -- AngloGold Ashanti posted first-quarter adjusted headline
earnings of $61 million after a strong performance from its mines in Tanzania
and the Americas helped offset seasonally lower production from South Africa.
"Our operations in Brazil and Argentina had another strong quarter and the
turnaround progress in the U.S. and Tanzania was also very encouraging,``
Chief Executive Officer Mark Cutifani said. ``Our focus now is to build on
those performances and improve the contribution from our South African
division.``
Production was 1.08Moz at a total cash cost of $619/oz in the three months
to 31 March 2010, compared with production the previous quarter of 1.18Moz at
$598/oz and guidance of 1.07Moz at $655/oz issued by the company in February.
The Brasil Mineracao operations saw a cost reduction of 12% to $369/oz,
consolidating its position as the company`s lowest-cost producer.
Adjusted headline earnings were $61 million, or 17 cents a share in the
first quarter, given seasonally weak production at the South African
operations following the December holiday shutdown. This compares with fourth-
quarter profit of $228 million, or 62 cents a share, which was boosted by a
once-off foreign exchange gain.
`AN INCREDIBLE SLATE OF NEW PROJECTS`
AngloGold Ashanti`s board approved a $195m investment to develop its
Corrego de Sitio mine in Brazil, which is expected to reach its commercial
production rate of 140,000oz per annum by 2013.
A decision will be made toward the of the year on the development of its
new Tropicana project in western Australia, where exploration drilling has
found new sources of gold mineralization near the main project area which has
the potential to both increase the size of the proposed mine and its life.
Negotiations with the state gold mining company of the Democratic Republic of
the Congo were successfully concluded during the quarter, prompting the
initiation of a pre-feasibility study for the proposed Mongbwalu mine in the
country`s northeastern Ituri region.
In Colombia, where the company is awaiting water permits to allow
resumption of drilling on its La Colosa deposit, exploration began on several
other targets and talks are underway to determine with joint venture B2Gold
to determine the best way to progress the development of the Gramalote
project.
``We`ve got an incredible slate of new projects in the Americas, Africa
and Australasia,`` Cutifani said. ``Our focus is squarely on developing the
potential that exists within our portfolio.``
`A STRONG VOTE OF CONFIDENCE`
AngloGold Ashanti strengthened its balance sheet post the quarter end,
with the first investment-grade issue of a 30-year bond by a South African
corporate. The issue of $300 million of 30-year notes and $700m of 10-year
notes was more than six-times oversubscribed. This $1 billion bond issue was
completed in April, only days after the company agreed with a group of 16
banks to a $1 billion, four-year revolving credit facility (RCF), which was
1.6 times oversubscribed.
``The overwhelming appetite to provide us with long-term debt demonstrates
a strong vote of confidence not only in AngloGold Ashanti, but also in South
Africa,`` Cutifani said. `` Wrapping up a $2 billion refinancing facility at
very competitive interest rates, gives us the flexibility to focus on
delivering our operating and growth commitments.``
Production in the second quarter is anticipated to be similar to that of
the first quarter at a total cash cost of $650/oz. This accounts for a
previously announced interruption at the Ghanaian operations to implement a
revised water management strategy and tailings facility upgrade, as well as a
planned decline in output from Sunrise Dam in Australia. Full-year guidance
is maintained at 4.5Moz to 4.7Moz at a cash cost of $590/oz to $615/oz.
ENDS
JOHANNESBURG
7 May 2010
Contacts
Tel:
Alan Fine (Media) +27(0)11 637 6383
E-mail: fine@AngloGoldAshanti.com
Joanne Jones (Media) +27(0)11 637 6813
E-mail: jjones@AngloGoldAshanti.com
Sicelo Ntuli (Investors) +27(0)11 637 6339
E-mail: sntuli@anglogoldashanti.com
Stewart Bailey (Investors) +1 212 836 4303 or +27 82 330 9628
E-mail: sbailey@anglogoldashanti.com
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash costs and other operating results, growth prospects and
outlook of AngloGold Ashanti`s operations, individually or in the aggregate,
including the completion and commencement of commercial operations of certain
of AngloGold Ashanti`s exploration and production projects, the resumption of
production at AngloGold Ashanti`s mines in Ghana, the completion of announced
mergers and acquisitions transactions, AngloGold Ashanti`s liquidity and
capital resources, and expenditure and the outcome and consequences of any
litigation proceedings or environmental issues, contain certain forward-
looking statements regarding AngloGold Ashanti`s operations, economic
performance and financial condition. Although AngloGold Ashanti believes that
the expectations reflected in such forward-looking statements are reasonable,
no assurance can be given that such expectations will prove to have been
correct. Accordingly, results could differ materially from those set out in
the forward-looking statements as a result of, among other factors, changes
in economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions including environmental approvals and actions, fluctuations in gold
prices and exchange rates, and business and operational risk management. For
a discussion of certain of these factors, refer to AngloGold Ashanti`s annual
report for the year ended 31 December 2009, which was distributed to
shareholders on 30 March 2010. The company`s annual report on Form 20-F, was
filed with the Securities and Exchange Commission in the United States on
April 19, 2010. AngloGold Ashanti undertakes no obligation to update publicly
or release any revisions to these forward-looking statements to reflect
events or circumstances after today`s date or to reflect the occurrence of
unanticipated events. All subsequent written or oral forward-looking
statements attributable to AngloGold Ashanti or any person acting on its
behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the
main page of its website at www.anglogoldashanti.com and under the
"Investors" tab on the main page. This information is updated regularly.
Investors should visit this website to obtain important information about
AngloGold Ashanti.
Date: 07/05/2010 08:00:31 Supplied by www.sharenet.co.za
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