VENTURES AFRICA – South Africa’s AngloGold Ashanti on Monday declared a 41 percent decrease in second quarter earnings despite its increased output.
The leading gold producer, with operations in eleven countries, said that because of the drop in the dollar gold price and a deferred tax resulting in an increase in its first quarter profits, it anticipated a 40 percent reduction in its second quarter earnings.
The company declared a dividend of approximately 12 cents per share and maintained its 2012 production target of between 4.3 and 4.4 million ounces while its adjusted headline earnings for the second quarter was 65 cents per share.
Surprisingly, AngloGold’s total cash crops exceeded company expectation and rose to $801 because of increased production and weaker local currencies.
The Johannesburg-based miner also predicted its cash costs will rise to between $835 and $865 an ounce in the third quarter.
The mining giant’s second quarter gold production of ”1.07 million ounces beats guidance on strong performances from continental Africa and the Americas”, Reuters reported.