AngloGold Ashanti makes $294m profit after hedge elimination

The leading gold miner in Ghana, AngloGold Ashanti says it has posted adjusted headline earnings (Excluding cost of accelerated hedge buy-back) of $294 million during the fourth quarter of 2010.

According to AngloGold Ashanti, its South Africa, Argentina and Guinea operations posted strong production results and elimination of the company’s hedge book in October 2010 boosted cash flow.

The result, AngloGold Ashanti says in a press release copied to ghanabusinessnews.com  represents strong growth in underlying profitability given that the previous quarter’s adjusted headline earnings of $303 million were boosted by a once-off credit of $84 million.

Commenting, CEO Mark Cutifani said “As long as the hedge book was in place, we were fighting with one hand tied behind our backs. Now that we’re selling our gold at spot prices and entrenching business improvements across the organization, we’re spinning off significant cash flow.”

Cash flow generated from the company’s operating activities in the three months to December 31, excluding hedge buyback costs, surged 60% to $679m, it added.

By Emmanuel K. Dogbevi