AngloGold Ashanti Results for the First Quarter Ended 31 March 2007
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| Friday, May 04, 2007 |
AngloGold Ashanti reported adjusted headline earnings of $97m for the first quarter of 2007, nearly double that of the previous quarter, due to an improved price received and the absence of accounting adjustments that negatively affected earnings in the fourth quarter of 2006.
Operational performance saw production down 10% on the prior quarter to 1.33Moz, primarily as a result of the year-end break and associated fewer production shifts in South Africa and Mali during the first quarter. Total cash costs for the company were consequently 7% higher to $332/oz and were also affected by a reduction in by-product revenue from uranium in South Africa and to a lesser extent, sulphuric acid in Brazil.
The company continued to deliver into maturing hedge contracts, reducing the hedge delta by 570,000 ounces to 9.59Moz, despite a spot price that was $27/oz higher at the close of the quarter. The price received increased 4% to $602/oz, or 7% below the average spot price.
Commenting on the quarter, Bobby Godsell, AngloGold Ashanti’s CEO said, “In what is traditionally a challenging quarter for South African gold companies, we have delivered results close to our market guidance. The decline in the hedge delta represents the company’s concerted effort to continue
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| Queries |
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Tel: |
Mobile |
E-mail: |
| South Africa |
| Charles Carter |
+27 (0) 11 637 6385 |
+27 (0) 82 330 5373 |
cecarter@AngloGoldAshanti.com |
| Michael Clements |
+27 (0) 11 637 6647 |
+27 (0) 82 339 3890 |
mclements@AngloGoldAshanti.com |
Disclaimer
Certain statements made during this presentation, 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 the outlook of AngloGold Ashanti’s operations including the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production projects, and its liquidity and capital resources and expenditure, 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, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of such factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2006, which was distributed to shareholders on 29 March 2007. 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. | |
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