AngloGold posts $429m earnings first quarter 2012

AngloGold Ashanti posted adjusted headline earnings of $429 million, more than double the same period in 2011, according to the company’s first-quarter 2012 report released May 10, 2012.

The miner’s profit attributable to equity shareholders also doubled year-on-year to $563 million.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew up 39% year-on-year to $800 million compared to 22% average rise in gold price.

AngloGold said its production was however down 6% to 981,000 ounces. This was due to safety stoppages in its South African operations, it added.

The company’s board has giving approval to invest $1.9 billion over the coming five years to expand its Cripple Creek & Victor mine in the US and also develop the Mongbwalu and Kibali projects in the Democratic Republic of Congo.

The projects will be funded internally and are expected to contribute additional annual production of more than 500,000 ounces to AngloGold, the company said in a statement.

AngloGold indicated that it plans to increase production to between 5.4 million and 5.6 million ounces by about 2014 from a combination of new projects in Africa, Australia and South America and through the expansion of some existing operations.

By Ekow Quandzie