BLBG:AngloGold Profit Rises 46%; Plans $1.9 Billion of Project
AngloGold Ashanti Ltd. (ANG), the third- largest producer of the metal, said first-quarter profit climbed 46 percent and it approved $1.9 billion of projects to boost production.
Adjusted earnings excluding one-time items surged to $1.11 a share in the three months through March 31, helped by a $90 million tax credit, from $0.76 in the prior three months, the Johannesburg-based company said in a statement today. The median estimate of three analysts surveyed by Bloomberg was for 6.46 rand ($0.81).
Chief Executive Officer Mark Cutifani is trying to push output to benefit from bullion prices that have gained for each of the past 10 years. Government safety stops in South Africa and unplanned repairs in Ghana hampered his efforts during the quarter.
Production of 981,000 ounces in the three months through March 31 missed the company’s target of 1.03 million ounces. Second-quarter output will probably be about 1.04 million ounces, the company said.
Smaller rival Harmony Gold Mining Co. (HAR) reported a 3.3 percent decline in earnings excluding one-time items yesterday as production lagged behind targets. Gold Fields Ltd. (GFI), Africa’s second-largest producer, is scheduled to report on May 17.
AngloGold advanced as much as 2.4 percent to 268.81 rand in Johannesburg trading, the highest intraday price for more than a week, and was at 267.30 rand at 12:01 p.m. Harmony was 0.8 percent higher, while Gold Fields retreated 0.7 percent.
Congo Mine
AngloGold approved $1.9 billion of investments over the next five years to expand Cripple Creek & Victor mine in the U.S. and dig the Mongbwalu and Kibali mines in Democratic Republic of Congo to add 500,000 ounces a year of production. The company plans to boost output to between 5.4 million and 5.6 million ounces by about 2014.
Gold was little changed at an average $1,689.14 an ounce during the quarter compared with the average in the preceding three months.
Analysts who cover South African gold producers measure quarter-on-quarter performance on the basis of earnings excluding one-time items.
To contact the reporter on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net
To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net
