Gold miner AngloGold Ashanti expects to report headline earnings of between $91-million and $108-million for the six months ended June 30, compared with a headline loss of $89-million in the first half of 2017.
Headline earnings a share for the six months under review are expected to be between $0.22 and $0.26, compared with a headline loss a share of $0.22 in the prior comparable period.
Basic earnings for the period are expected to be between $16-million and $51-million, with basic earnings a share between $0.04 and $0.12, compared with a basic loss a share of $176-million and a basic loss a share of $0.43 reported for the first half of 2017.
AngloGold Ashanti noted in a trading statement on Thursday that the basic earnings for the six months under review, includes the adverse impact of $67-million, or $0.16 a share, related to the derecognition of the Mine Waste Solutions uranium plant, in South Africa, given that, under current market conditions, the plant is unlikely to be used.
AngloGold attributed the improvements in basic and headline earnings to a 4% year-on-year increase in production, as well as an improvement in all-in sustaining costs owing to lower sustaining capital expenditure and lower exploration and rehabilitation costs.
A 6% improvement in the average gold price received, as well as lower retrenchment costs relating to the South African operations, of $22-million, which were $25-million, or $0.06 a share, lower than the comparative period, also contributed to the improved earnings.
Earnings in the comparable period were also unfavourably impacted on by the estimated one-off, noncash settlement costs for silicosis class action claims, of $46-million, or $0.11 a share.
PRODUCTION
Production from AngloGold’s retained operations increased by 4% to 1.58-million ounces, from 1.52-million ounces in the comparable period, as a result of strong production improvements at the Sunrise Dam and Tropicana mines, in Australia, and the Kibali, Iduapriem and Mponeng mines, in Africa.
AngloGold’s international operations contributed 87% of production, while the South African operations contributed 13%.
The miner highlighted that, given the sale of Moab Khotsong and Kopanang mines in the first quarter of this year, and the closure of TauTona at the end of 2017, these, together, resulted in a net year-on-year reduction of about 180 000 oz.
AngloGold will release its interim results on August 20.