AngloGold Ashanti earns $203m in first quarter 2011

AngloGold Ashanti says it has recorded adjusted earnings of $203 million in the first quarter of 2011.

The gold miner also says it boosted cash flow from its operations after eliminating its hedge book last year to reap the full benefit of record gold prices.

“Adjusted headline earnings in the three months to 31 March, 2011 were $203m, or 53 US cents a share compared with $61m, or 17 US cents for the corresponding quarter in 2010”, the world’s third-largest gold mining company said in a press release copied to ghanabusinessnews.com May 11, 2011.

This was due to improved year-on-year performance from the South African mines and full impact of higher bullion prices, it says.

According to AngloGold,  its cash flow during the period was $513 million.

“Cash flow generated from the company’s operating activities during the first quarter was $513m. Net debt** improved by another 15% to $1.1bn, underscoring the improvement in AngloGold Ashanti’s cash generation, even after the company funded its capital expenditure requirements”, the company said.

Since its entry into Ghana in 2004 after taking over Ashanti Goldfields, AngloGold has invested $766 million in the Ghanaian operations, the company indicated in an advertiser’s announcement in the Daily Graphic dated February 14, 2011.

Production was 1.039Moz at a total cash cost of $706/oz in the three months to 31 March, 2011, compared with 1.079Moz at $619/oz the for the corresponding quarter last year, and guidance for the first quarter of 1.04Moz at $675/oz to $700/oz, said the release.

Even though it recorded two fatalities after separate incidents in South Africa and Ghana, the company says reported fatal incident rate has now dropped more than 90% since the introduction of the “Safety is Our First Value” approach in late 2007.

By Ekow Quandzie