AngloGold Ashanti reported a headline loss of 1 099 United States cents per share in the fourth quarter on Thursday, after safety related shutdowns and ongoing problems at its Geita mine cut production.
The world’s third biggest gold producer said production in the quarter to end December fell 5% to 1,37-million ounces after stoppages prompted by a spate of mining accidents in South Africa last year.
Chief executive Mark Cutifani, who has made safety a key focus since taking up the post last year, said that improvements in its performance depended largely on whether South Africa could solve a crippling power crisis.
”We have a great deal of work to do on our operational and cost performance. We are focused on putting specific plans in place to improve performance throughout our assets, in particular where recent performance has been unacceptable,” he said in a statement.
”The uncertainty around Eskom power supply is having a significant impact on our operations in South Africa. This uncertainty means that our South African business faces very particular challenges right now …”
South Africa has been hit by black-outs since early January, the latest sign that electricity demand has failed to keep up with growth in Africa’s largest economy.
The power shortages forced gold and platinum miners in South Africa — a leading producer of both metals — to shut down for five days, pushing global prices of the commodities to record highs on supply concerns. – Reuters