[miningmx.com] — ANGLOGOLD Ashanti on Monday sank to its lowest
level in 12 months as the company’s first-quarter output fell short of guidance.
The gold producer reported production figures of 980,000 ounces for the period; 5%
short of its 1.03 million oz guidance. The shortfall would also have an effect on unit
cash costs, predicted in February to be between $820/oz and $835/oz.
Foremost among the reasons that AngloGold gave for the disappointing performance
was mandatory safety stoppages and the subsequent slow ramp-up associated with
safely restarting deep-level mines. This accounted for 76,000 oz in lost production,
the group said.
“AngloGold Ashanti delivered its best ever safety performance in 2011 – with lowest
ever fatality rates in South Africa and its lowest total injury frequency rate across its
global operations,’ said AngloGold CEO Mark Cutifani.
“While we are disappointed with our start to 2012, we remain committed to delivering
on our vision to go “beyond zero harm’.
“In addition, we remain absolutely committed to working with our employees and
government partners to constructively improve safety on the country’s mines.
Consistent with this commitment, we continue a close dialogue with the mining
inspectorate at a national and regional level, with a view to helping achieve these
shared objectives.’
It said the weaker South African rand would help to partially mitigate high unit costs.
AngloGold said its three operations in Mali – Morila, Yatela and Sadiola – operated as
normal following the recent coup that has now been resolved, and that it continued to
meets its fiscal obligations to the country’s exchequer.
In addition, AngloGold Ashanti will report a deferred tax charge, resulting from the
increase in Ghana’s corporate tax rate from 25% to 30%.
This will, however, be more than compensated for by a deferred tax credit created by
the reduction in South Africa’s marginal tax rate applicable to gold mining companies
from 43% to 34%, following the introduction of withholding tax on dividends that
replaced the secondary tax on companies.
AngloGold’s shares were trading at R263.50 on Monday at 15:40, down 1.9% for the
day.
