Wrap Text
ANG - AngloGold Ashanti Limited - Anglogold Ashanti Q3 profit at record
$457M; raises dividend
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 Q3 PROFIT AT RECORD $457M; RAISES DIVIDEND
- Record quarterly adjusted headline earnings* of $457m, 118 US cents a
share
- Record quarterly operating cash flow of $863m
- Net Debt 28% lower at $620m
- Change to quarterly dividend; Q3 2011 dividend of 90 South African cents
a share
- Strong demand from Central Banks, ETF`s and jewellery
(ANGLOGOLD ASHANTI) - AngloGold Ashanti posted record quarterly adjusted
headline earnings* of $457m and boosted its dividend to improve cash returns
to shareholders. Payouts to shareholders will now be made quarterly, instead
of twice yearly.
"Our power to generate earnings and strong cash flow is clear in these
numbers," Chief Executive Officer Mark Cutifani said. "The upward jump in the
dividend demonstrates the fundamental strength of the business and the
market, while maintaining the ability to fund our growth pipeline."
AngloGold Ashanti eliminated the gold industry`s last remaining major
hedge book a little more than a year ago, improving cash inflows and profits
by increasing exposure to the rising gold price. Bullion remains firmly
underpinned by strong demand from large emerging markets like China and
India, a range of Central Banks diversifying reserves and investors seeking a
safe haven from global economic turmoil. While prices rise, the company is
implementing a new operating model to improve productivity across 20 mines
and a portfolio of development projects.
Adjusted headline earnings in the three months to September 30 rose 34% to
$457m, or 118 US cents a share, compared with $342m, or 89 US cents the
previous quarter. The Continental Africa operations were a significant
contributor, with Geita the largest contributor at 149,000oz at a cash cost
of $473/oz.
Cash flow generated from the company`s operating activities during the
first quarter more than doubled to $863m, another record. Net debt** improved
by a further 28% to $620m, underscoring the improvement in AngloGold
Ashanti`s cash generation, even after funding capital expenditure. The
improved cash flow allowed for a 90 South African cents quarterly dividend,
equal to the first-half dividend payment. The company plans to repeat that
payment in the fourth quarter, taking the total dividend for the year to 270
South African cents, compared with the previous year`s 145 South African
cents.
Production for the three months to 30 September 2011 was 1.092Moz at a
total cash cost of $737/oz. This compared to guidance of 1.11Moz at $775/oz
and the previous quarter`s production of 1.086Moz at $705/oz. The previous
quarter`s costs received the once-off benefit of higher-grade feed at Geita
to compensate for the SAG mill shutdown, which was not repeated during the
third quarter.
The third quarter`s result was bolstered by strong performances at Geita
in Tanzania, Iduapriem in Ghana and from the Americas, where Cerro Vanguardia
in Argentina was once again a standout as the group`s most efficient
producer. Nevertheless, drought continues to impact production from Cripple
Creek, while Sunrise Dam`s recovery from flooding in the first half of the
year was again slower than anticipated, as was the ramp-up of production
following the five-day wage-related strike at the South African operation. In
addition, winter power tariffs, higher wages, increased royalties and lower
by-product credits also contributed to cost pressure in South Africa.
Tragically, three fatalities were recorded in South Africa. The company
continues to invest in improving its long-term safety performance, with the
benchmark all injury frequency rate of 9.51 per million hours, the lowest in
the company`s history. The company continues to strive toward an elimination
of workplace injuries.
Given the increased safety stoppages in South Africa, the ongoing water
shortages at CC&V and the slower ramp up at Sunrise Dam, full year 2011
production is now estimated to be around 4.33Moz. Total cash costs*** are
estimated at between $735-$745/oz on the basis of slightly weaker local
operating currency assumptions for the year. This translates to a fourth
quarter estimated production of approximately 1.11Moz at a total cash cost of
approximately $790/oz. The increase in fourth quarter costs is driven mainly
by deferred stripping and inventory charges.
* Excludes cost of accelerated hedge buy-back
** Excludes mandatory convertible bonds
*** Assuming an exchange rate of R7.10/$ and an oil price of $111/barrel.
ABOUT ANGLOGOLD ASHANTI
AngloGold Ashanti is a global gold mining company and the world`s third
largest gold producer. Headquartered in Johannesburg, South Africa, AngloGold
Ashanti has 20 operations on four continents and several exploration
programmes in both the established and new gold producing regions of the
world. AngloGold Ashanti employed 62,046 people, including contractors, in
2010 and produced 4.52Moz of gold, generating $5.3bn in gold income. Capital
expenditure in 2010 amounted to $1,015m. As at 31 December 2010, AngloGold
Ashanti`s Ore Reserve totalled 71.2Moz.
The primary listing of the company`s ordinary shares is on the JSE Limited
(JSE). Its ordinary shares are also listed on stock exchanges in London,
Paris and Ghana, as well as being quoted in Brussels in the form of
International Depositary Receipts (IDRs), in New York in the form of American
Depositary Shares (ADSs), in Australia, in the form of CHESS Depositary
Interests (CDIs) and in Ghana, in the form of Ghanaian Depositary Shares
(GhDSs).
ENDS
9 November 2011
JSE Sponsor - UBS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Mike Bedford (Investor) +27 11 637 6273 mbedford@anglogoldashanti.com
Stewart Bailey(Investor) +1 2128364303 sbailey@anglogoldashanti.com
Certain statements made in this communication, including, without
limitation, those concerning 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 and the completion of announced mergers
and acquisitions transactions, AngloGold Ashanti`s liquidity, capital
resources and capital expenditure and the outcome and consequences of any
litigation or regulatory 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 and other factors, refer to AngloGold
Ashanti`s annual report for the year ended 31 December 2010, which was
distributed to shareholders on 29 March 2011 and the company`s 2010 annual
report on Form 20-F, which was filed with the Securities and Exchange
Commission in the United States on May 31, 2011. These factors are not
necessarily all of the important factors that could cause AngloGold Ashanti`s
actual results to differ materially from those expressed in any forward-
looking statements. Other unknown or unpredictable factors could also have
material adverse effects on future results. 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.
This communication may contain certain "Non-GAAP" financial measures.
AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios
in managing its business. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the reported operating results or
cash flow from operations or any other measures of performance prepared in
accordance with IFRS. In addition, the presentation of these measures may
not be comparable to similarly titled measures other companies may use.
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: 09/11/2011 08:00:00 Supplied by www.sharenet.co.za
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