ALLAN SECCOMBE, Johannesburg | Friday 3.40pm.
WORLD number one gold producer AngloGold said on Friday it will close or sell three ageing gold mines after reporting weaker profits for the March quarter.
A weak gold price and production problems in South Africa, Australia and North America overshadowed good performances from mines in South America, Mali and Namibia, the company said in its quarterly report.
AngloGold’s attributable profit fell to R415-million in the three months ended March 31, from 532-million rand in the previous December quarter.
Headline earnings per share fell to 420 cents from a previous 494 cents. Analysts polled had forecast earnings per share of between 440 cents and 505 cents a share.
Investors lopped 6,4% off the company’s shares to R248 on the Johannesburg Stock Exchange, underperforming the gold sector which was down by around 3%. “Five of our 13 South African mines performed poorly, resulting in a second disappointing quarter by the South African domain,” AngloGold Chief Executive Officer Bobby Godsell said in a statement. — AFP