Dual-listed AngloGold Ashanti expects its headline earnings for the six months ended June 30 will be between $392-million and $416-million, with headline earnings per share (HEPS) of between $0.94 and $0.99.

This compares with headline earnings and HEPS of $120-million and $0.29 for the comparative period in 2019.

Further, basic earnings from continuing and discontinued operations for the six months under review are expected to be between $410-million and $432-million, resulting in total basic earnings per share (EPS) from continuing and discontinued operations of between $0.97 and $1.02.

This compares with basic earnings and EPS for the comparative period of $114-million and $0.27.

AngloGold Ashanti attributes the expected increases in headline earnings and basic earnings to the gold price received having increased by more than 25%; weaker local currencies that mitigated increases in the cost of sales; higher foreign exchange gains of $19-million; and income from joint ventures having increased by $41-million.

Further, earnings were favourably impacted on in the current period by $17-million relating to the noncash impairment reversal on the South African producing assets and related liabilities classified as held for sale as a result of the agreement to sell these assets to Harmony Gold Mining Company.

However, care and maintenance costs of $21-million were incurred in the six months under review.

Also, higher taxes, withholding taxes and royalties paid in most jurisdictions and deferred taxes raised in Brazil on foreign exchange movements relating to non-monetary assets; negative movements on realised and unrealised oil and gold derivatives of $18-million; discounting of the Argentine export duties; and a Brazilian power utility legal settlement received in April 2019 of $11-million (post-tax) that was not repeated in the current period, also impacted on earnings for the period.

OPERATIONAL PERFORMANCE  

Production for the period  is expected to be 1.47-million ounces, compared with the 1.55-million ounces produced in the first half of 2019.

AngloGold said it delivered a solid production performance for the first half of the year, especially given the challenges created by the Covid-19 pandemic.

This performance was supported by strong second-quarter performances from Geita, Iduapriem and Serra Grande, as well as steady production from Kibali and AGA Mineração.

Notable production improvements quarter-on-quarter were recorded at Sunrise Dam, Siguiri and Cerro Vanguardia.

The Obuasi Redevelopment project continues to ramp up and was impacted by the delays in receiving equipment and in the arrival of certain critical skills to site owing to Covid-19.