DARREN SCHUETTLER, Johannesburg | Wednesday
SOUTH African gold giants AngloGold Ltd and Gold Fields Ltd are expected to report flat to stronger results for the September quarter, analysts said this week.
AngloGold is expected to report headline earnings per share of between 400 cents and 465 cents when the company delivers its results for the quarter to September 30 on Friday.
AngloGold, the world’s biggest gold producer, reported 420 cents in the quarter to June.
The company has been dogged by some poor performing mines in South Africa, where it produces the bulk of its annual seven million ounces of gold.
”We’re expecting them to go sideways to slightly lower depending on the turnaround they come up with on some of the operations,” said BOE Natwest Securities analyst Piet Stals.
”It’s such a huge ship it will take time to totally recover from the problems they have had,” Stals said.
Rice Rinaldi analyst Allan Cooke has pegged AngloGold’s headline earnings per share at around 465 cents.
”I think you’ll find it has more to do with the rand gold price, but there should be a marginal improvement in some of the operations,” Cooke said.
The rand has surrendered around 24% of its value against the dollar this year – leading to record high gold prices in local currency terms.
Gold Fields’ quarterly report comes more than a month after the South African government rejected the company’s proposed $3.7bn merger with Canada’s Franco-Nevada. Gold Fields has said it is seeking to resurrect the deal.
Analysts said they expected a solid performance operationally at Gold Fields, with forecast headline earnings of between 55 and 58 cents a share. – Reuters