Friday, 29th July 2005 (3094 views)

South African mining firm AngloGold Ashanti has announced that gold production remained steady at 1.569Moz during the second quarter of 2005, due to solid performances from the Brazilian, Malian and Australian assets.

The world’s second-largest gold producer said its had witnessed strong financial performance in the three months to June 30th, including a $74 million increase in profit to $96 million.

In a statement, the Johannesburg-based company said that the June quarter had produced steady operational results and a good financial performance including a 19 per cent increase in headline earnings to $92 million.

AngloGold said earnings had been boosted by the net positive effect of a statutory tax rate reduction in Ghana to 25 per cent for three years and strong gold prices. The group produced 1.567 million ounces in the quarter, slightly below a forecast of 1.6Moz.

The company revealed plans to cut $82 million in costs at its at South African mines this year to offset rising wages and prices for steel, electricity and water and announced that it planned to close its Savuka mine in South Africa early in 2006.

AngloGold CEO Bobby Godsell said increasing mining contractor rates, the strong oil price and the generally higher price of consumables required that cost management remained "a key management focus" across the group.

 

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