AngloGold Ashanti results likely to shine


AngloGold Ashanti results likely to shine

Published Date: 2019-02-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

AngloGold Ashanti results likely to shine

The gold producer's shares declined despite it flagging a more than sevenfold rise in full-year earnings.

AngloGold Ashanti expects to post a strong rise in full-year profit as it scaled back its operations in South Africa and grew production from its Kibali mine in the Democratic Republic of Congo.

However, despite an upbeat trading statement for the year to end-December, the gold producer's shares declined as much as 9.5%.

It said headline earnings for the period were expected to be between $207 million and $224 million, up from $27 million in 2017. Headline earnings per share were likely to reach between 50c and 54c from 6c the previous year. It would report basic earnings of $120 million to $137 million from a $191 million loss.

AngloGold Ashanti said lower amortisation levels for South Africa following the closure of its TauTona mine in 2017 and the sale of Moab Khotsong and Kopanang early last year, as well as a reduction of Ore Reserve Development amortisation in Brazil, added $78 million to earnings. Income from Kibali increased by R95 million, it said.

Basic earnings were impacted by a $66 million non-cash impairment of the Uranium plant at its Mine Waste Solutions gold and uranium tailings recovery operation near Stilfontein. It also paid retirements costs related to its restructured operations of $25 million, down from $71 million in 2017.

The previous year's earnings were also affected by a $46 million once-off, non-cash provision in respect of the estimated costs of its settlement of the silicosis class action claims brought against the SA mining industry.

Its shares retraced some of their losses to end 5.1% down at R180.34, outpacing a 3.8% decline on the JSE's Gold Mining index.

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