AngloGold expects to report higher FY18 profit
AngloGold Ashanti expects to report headline earnings a share of between 50c and 54c for the year ended December 31.
This is a significant increase compared with the headline earnings a share of 6c reported for the comparative period.
Basic earnings a share for the period are expected to be between 29c and 33c, compared with a basic loss a share of 46c for the prior comparable period.
The expected overall increases are primarily as a result of lower amortisation levels for South Africa with the closure of TauTona in 2017, and the sale of the Moab Khotsong and Kopanang operations early in 2018, the global gold miner said on Monday.
Additionally, a reduction of ore reserve development amortisation in Brazil resulted in increased earnings of $78-million, or 19c a share, while income from the Kibali mine, in the Democratic Republic of Congo, increased by $95-million, or 23c a share.
The miner further noted that in 2018, a noncash impairment of the uranium plant of Mine Waste Solutions affected basic earnings by $66-million, or 16c a share, compared with 2017, where noncash impairments and derecognition of certain of the South African assets and goodwill, largely as a result of the restructuring and disposal of the related assets, affected basic earnings by $221-million, or 53c a share.
Additionally, retrenchment costs in 2018 related to the restructured South African operations were $25-million, or 6c a share, while in 2017 the impact was $71-million.
A one-off noncash provision in respect of the estimated costs of the settlement of the silicosis class action claims and related expenditure, of $46-million, or 11c a share, affected both basic earnings and headline earnings a share, AngloGold Ashanti said on Monday.
The miner’s financial results will be released on February 19.
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