ANGGOLD: 18,385 0 (0.00%)
AngloGold swings back into H1 profit, Obuasi mine reboot on track
JOHANNESBURG, Aug 20 (Reuters) - AngloGold Ashanti
swung back into a first-half profit on the back of higher
production and lower-than-expected retrenchment costs, Africa's
top gold producer said on Monday.
The firm posted headline earnings of $99 million for
January-June, in line with figures it had previously flagged,
compared with a headline loss for the same period last year of
The turnaround in performance was also due to the absence of
one-off, non-cash settlement costs for silicosis class action
claims which hit its earnings last year.
In Ghana, AngloGold said the redevelopment of its historic
Obuasi asset was on track with the issuing of environmental
permits and the ratification by the Ghanaian parliament of the
fiscal and regulatory agreements to reboot the mine.
"The ratification of investment agreements by Ghana's
parliament in June allowed the redevelopment of the high-grade
Obuasi Gold Mine to commence in earnest," the company said.
AngloGold said in February it would spend up to $500 million
to mechanise its Obuasi mine in Ghana.
The company said last year Ghana's military had cleared
Obuasi mine of illegal miners, who had invaded the site and
numbered up to 12,000 at one, paving the way for the company to
AngloGold's outgoing Chief Executive Srinivasan
Venkatakrishnan said on a conference call that concluding the
Obuasi agreements were his "most satisfying" accomplishment as
he prepares to step down at the end of August.
"If that hadn't been concluded, I would have left with quite
a big regret," he said.
(Reporting by Ed Stoddard
Editing by Sai Sachin Ravikumar and Edmund Blair)
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