Anglo’s production of gold in SA drops

ANGLOGOLD Ashanti yesterday reported an 18% decline in South African production to 239 000 ounces, partly as a result of safety-related interruptions.

“The tragic fatalities at Mponeng mine, as well as various other safety-related interruptions at the Vaal River region . . . exacerbated the slower start-up after the Christmas break,” it said.

“In addition, the South African operations lost about 33 000oz due to safety stoppages, increased seismicity at West Wits (particularly at Mponeng) and some 3 000oz, mainly due to electricity supply issues, including equipment theft and failure.

“Total cash costs were adversely impacted by lower production, despite currency weakness and efforts to contain inflationary pressures.”

All-in sustaining costs were 12% higher in the South African operations.

Anglo’s international portfolio, which covers mines in nine countries, saw all-in sustaining costs fall 13% to $849/oz compared with the first quarter of last year, while production from ongoing operations was 2% higher yearon-year at 730 000oz.

Adjusted headline earnings for the quarter ended March were $35-million (R421-million) from $119- million (R1.43-billion) in the year-earlier period.

Chief executive Srinivasan Venkatakrishnan said the company’s international portfolio was exceptionally strong and showed the benefit of Anglo’s diversified portfolio.

“We’ve continued to focus on delivering real operational efficiencies and tight cost management, while ensuring we benefit from weaker producer currencies and lower oil prices. It shows in these results,” he said.

The company said it was testing market interest for the sale of all or part of its Cripple Creek & Victor mine in the US, and was in talks to sell its stake in the Sadiola and Yatela mines in Mali, with the proceeds of any sales earmarked to reduce debt levels.

The gold miner said production in the second quarter was estimated to be between 960 000 ounces and 1 million ounces.