South Africa’s largest gold producer AngloGold said on Thursday September quarter earnings had risen as it deflected rising domestic costs and inflation through the diversity of its operations.
It said headline earnings per share (HEPS), which strip out exceptional items and their tax effects, had risen to 834 cents in the three months to end-September from the previous quarter’s 815 cents.
Analysts polled by Reuters had forecast HEPS of 853,25 cents.
”The wide diversity of AngloGold’s operations has enabled the impact of inflation and reduced grades to be offset,” AngloGold CEO Bobby Godsell said in a statement.
He acknowledged that South African operations suffered from increasing costs and a slower mining rate at Great Noligwa after seismic events earlier this year.
The company, which has operations in Africa, Australia and North and South America, said two of AngloGold’s five capital projects were complete and another three were on track for completion on time and within budget.
”Together these five projects will yield some 15-million ounces of gold production over their lives,” the company said.
It said it was studying the feasibility of two other ventures — the expansion of Boddington in Western Australia and the deepening of the existing Cuiab mine in Brazil.
The company said it had further reduced its hedge book to 10,1-million ounces by the end of October, from 10,5-million at the end of June.
Cash costs dipped two percent to $158/oz, and production rose 11 percent quarter on quarter to 1,6-million ounces.
The company also proposed a two for one share split.
AngloGold says it will produce six million ounces in 2002, and sees production rising to 6,5-million ounces over the next three to four years. – Reuters