Ghana mine drives AngloGold Ashanti’s earnings to $342m in second quarter 2011

AngloGold Ashanti recorded earnings of $342 million in the second quarter of 2011 after production and costs improved amid record gold prices. It recorded $203 million in earnings in the previous quarter.

The company’s Obuasi mine in Ghana contributed significantly to production improvements, it said in a statement copied to ghanabusinessnews.com August 4, 2011.

“Adjusted headline earnings in the three months to June 30 were $342 million, or 89 US cents a share, compared with $203 million, or 53 US cents a share the previous quarter. The Continental Africa operations were a significant contributor, with the Geita and Obuasi mines both delivering cost and production improvements,” AngloGold said.

Cash flow generated from the company’s operating activities during the first quarter rose 24% to a record $636 million as net debt improved by another 22% to $866m, underscoring the improvement in AngloGold Ashanti’s cash generation.

“We did a good job of containing costs and growing production, despite some difficult production issues. Our focus on driving free cash-flow generation and returns is evident in these results and this positions us well as we grow through a prudent, well-managed capital programme,” the company’s Chief Executive Officer, Mark Cutifani said.

By Ekow Quandzie