AngloGold CEO Srinivasan Venkatakrishnan
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – A higher gold price and weaker currencies have contributed to AngloGold Ashanti swinging back into profit for the six months ended June 30.
The gold miner, led by CEO Srinivasan Venkatakrishnan, expects to report headline earnings of between $87-million and $99-million and headline earnings a share of between 22c and 24c for the six months, compared with a headline loss of $128-million and a headline loss a share of 31c in the six months to June 30, 2015.
Basic earnings for the six months under review are expected to be between $45-million and $59-million, compared with a loss of $143-million in the prior comparable period.
Earnings a share are expected to be between 12c and 14c, compared with a loss a share of 35c in the six months to June 2015.
The gold price had averaged $1 222/oz in the six months to June 30, compared with an average of $1 204/oz in the prior comparable period, while weaker operating currencies in South Africa, Brazil, Australia and Argentina had benefited AngloGold in the six months under review.
AngloGold further attributed the higher earnings to a continued focus on cost control, interest savings and the positive effect of the translation of the deferred taxation balance in South America. This was partly offset by lower income from associates and joint ventures.
Meanwhile, the miner expects to report production of 1.75-million ounces from continuing operations for the six months, compared with 1.88-million ounces the year before.
AngloGold will publish its interim results on August 15.