Pretoria | Monday
SOUTH African multi-national gold producer AngloGold showed a headline earnings increase of 19% (R637-million) in its report for the quarter ended September 30, released on Wednesday morning.
This was the third successive improved quarter.
The equivalent US dollar increase in headline earnings was 15%, or US76-million.
This increase was before unrealised losses on hedging activities.
Gold production was increased by three percent to 1,8-million ounces, reflected across all the company’s regions: South Africa, Africa, North America, South America and Australia.
Total cash costs were down by five percent to $176 per ounce.
In South Africa, unit cash costs were down by one percent in rand terms, despite the wage increase which came into effect this quarter.
Total production costs were down by five percent to $211 per ounce.
Chairman and chief executive Bobby Godsell said: ”AngloGold has delivered a third successive improved quarter as a result of strong performances in all its operating regions.
”I am particularly pleased with our success in reducing operating costs. In South Africa, this was achieved against a background of increased employment costs arising from the industry-wide wage increase granted this year.”
Godsell said — without revealing details — that negotiations over the sale of AngloGold’s assets in the Free State were being finalised.
Earlier offers had been too low, but recent offers ”reflected a more realistic valuation” of the assets. – Sapa