South Africa-based AngloGold Ashanti, the world’s third biggest gold producer, said its output rose 4% q/q to 935,000 ounces in the second quarter of 2013, in line with its own guidance of between 900,000 and 950,000 ounces.
Total cash costs rose from USD 894 per ounce in Q1 to between USD 900 and 920 per ounce in Q2, in line with expectations, given annual power tariff increases and the higher winter power tariffs.
The company said its Q2 sales and earnings were negatively affected by a USD 220/oz drop in the average quarterly gold price, although it has responded with tightening of costs and investments. In light of those developments, it has revised down its full-year production guidance to between 4 and 4.1 million ounces from previously expected 4.1-4.4 million ounces.
Moreover, the company said it would take an impairment of between USD 2.2bn and USD 2.6bn in its Q2 results after revaluating its assets and ore stockpiles to reflect lower gold-price assumptions.
AngloGold, which has 21 operations in 10 countries, said its two key new joint venture projects – Tropicana in Australia and Kibali in the Democratic Republic of the Congo (DRC) – remained on schedule to pour their first gold by the end of this year, adding some 550,000 to 600,000 ounces of new production at a combined average total cash cost of less than its current average. The Kibali joint venture may produce its first gold as early as October.
AngloGold expects to release its Q2 financial report with detailed information in August.
South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more
South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more