Anglogold earnings to more than double

MINING company Anglogold Ashanti said yesterday it expected its headline earnings per share for the year to the end of December to more than double, to between 229 and 247 US cents, compared with 91c in 2019.

In a trading statement, Anglogold Ashanti said the anticipated increases in both headline earnings and basic earnings were primarily due to a 27 percent rise in the gold price, while weaker local currencies more than offset inflationary increases across operating jurisdictions.

The jump was also attributable to income from joint ventures, mainly the Kibali mine in the Democratic Republic of Congo, which rose by $110 million (R1.64 billion) post-tax. In addition, care and maintenance costs of $47m after tax incurred at the Obuasi mine in Ghana in the previous period were not repeated.

The higher earnings were partly offset by the derecognition of remaining deferred tax assets after the sale of the company’s South African operations to Harmony Gold and the discounting of Argentine export duties.

Anglogold Ashanti said production for the year to the end of December would dip to 3.047 million ounces (moz) from 3.281 moz the previous year, mainly due to the sale of the South African operations and the impact of the Covid-19 pandemic.

“Anglogold Ashanti delivered a solid production performance for the year,” the company said.

“The performance for the year was underpinned by a record year at Geita, and steady performances at Kibali, Iduapriem, Siguiri, Sunrise Dam, and AGA Mineração which helped offset declines in production at Tropicana, Cerro Vanguardia and Serra Grande,” it said.