“As expected production is lower than that achieved in the previous quarter (900 000 ounces), almost entirely due to the customary Christmas break in South Africa, when all mines close for two weeks,” it said in a brief guidance for investors.
“The guidance of between 3.5 and 3.7 million ounces for the full year 2011, provided on 18 February 2011, takes account of the seasonal decline in production in South Africa which typically affects the March quarter,” it added.
It said March production would still be five percent higher than the corresponding period a year ago.
One analyst said the number was on the low side.
“It looks slightly negative, I had hoped for a higher number,” said one Johannesburg-based analyst.
The world’s fourth-largest gold producer also said total cash costs and notional cash expenditure are expected to be approximately $750/oz and $1 090/oz respectively.
