| Thu 30 Oct 2008, 8:21 | | ANG - AngloGold Ashanti - Anglogold Ashanti results for the third quarter 2008 |
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ANG
ANANO
ANG - AngloGold Ashanti - Anglogold Ashanti results for the third quarter 2008
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI RESULTS FOR THE THIRD QUARTER 2008
Highlights
- Delivery for the third consecutive quarter on production and cost guidance,
with continued reduction in the hedge book.
- Production at 1.265Moz, 1% higher than previous quarter, with Obuasi and
Cerro Vanguardia posting substantial improvements.
- Total cash costs at $486/oz - better than guidance but higher than previous
quarter due to wage increases, power tariffs, inflation and inventory
movements - while costs are expected to reduce to approximately $460/oz in
the fourth quarter.
- Continuing safety focus, with lost time injury rate improving 10% and
despite four fatalities during the quarter, the fatality rate reduced for
the year by 60% against the same period in 2007.
-Uranium production up 7% to 346,000 pounds, with enhanced exposure to the
spot market expected in the fourth quarter.
- Hedge book commitments reduced by 580,000oz during the quarter, with the
company on track to reduce book to approximately 6.0Moz by year-end.
- Adjusted headline loss of $119m incurred, as a result of accelerated hedge
reduction.
- Greenfields exploration projects continue to make solid progress,
particularly in Australia and Colombia
Detail
AngloGold Ashanti reported an increase in gold production on 1.265Moz, 1%
higher than the previous quarter and in-line with guidance provided in July
2008. Cerro Vanguardia in Argentina and Obuasi in Ghana posted significant
improvements against the previous quarter, with gold production increasing
59% and 16% respectively. The South African operations continued to perform
steadily, using 92.4% of power supply, while operating at 100% production
capacity.
Total cash costs for the quarter at $486/oz, were higher than the prior
quarter`s $434/oz due to input cost inflation, annual wage increases, higher
power tariffs and inventory adjustments, but were within market guidance of
$490/oz.
The company also reduced its hedge commitments by 580,000oz during the
quarter, with a total hedge reduction year-to-date of almost 5Moz. As a
result of the continued accelerated hedge reduction, the company received a
price of $644/oz and posted an adjusted headline loss of $119m.
Net debt reduced from $2.7bn at the end of June 2008 to $1.23bn at the end
of September 2008. Net debt to EBITDA stood at 1.16 times at the end of the
quarter.
In respect of the fourth quarter, the company is expecting gold production
of approximately 1.25Moz and total cash costs of approximately $460/oz,
based on the following exchange rates assumptions: R8.40/$, A$/$0.80,
BRL1.9/$ and Argentinean peso 3.11/$.
Commenting on the quarter, CEO Mark Cutifani said, "We have now delivered on
production and cost commitments for three consecutive quarters. In the
context of weakening operating currencies across much of our asset base,
combined with our continuing hedge reductions, we are well positioned for
margin expansion going into 2009".
ENDS
Johannesburg
30 October 2008
JSE Sponsor : UBS
Queries
South Africa
Himesh Persotam (Investor Relations) Tel: +27(0)11637-6647
Mobile: +27(0)82 339 3890 E-mail:hpersotam@AngloGoldAshanti.com
Alan Fine (Media) Tel:+27(0)11 637-6383 Mobile:+27(0)83 250 0757
E-mail:afine@AngloGoldAshanti.com
Joanne Jones (Media) Tel:+27(0)11 637- 6813 Mobile:+27(0)82 896 0306
E-mail:jjones@AngloGoldAshanti.com
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic outlook
for the gold mining industry, expectations regarding gold prices, production,
cash costs and other operating results, growth prospects and outlook of
AngloGold Ashanti`s operations, individually or in the aggregate, including the
completion and commencement of commercial operations of certain of AngloGold
Ashanti`s exploration and production projects and completion of acquisitions and
dispositions, AngloGold Ashanti`s liquidity and capital resources, including its
intentions and ability to refinance its $1 billion convertible bond, and
expenditure and the outcome and consequences of any pending litigation
proceedings, contain certain forward-looking statements regarding AngloGold
Ashanti`s operations, economic performance and financial condition. Although
AngloGold Ashanti believes that the expectations reflected in such forward-
looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in gold prices and exchange rates, and
business and operational risk management. For a discussion of such factors,
refer to AngloGold Ashanti`s annual report for the year ended 31 December 2007,
which was distributed to shareholders on 31 March 2008, and report to
shareholders for the quarter and nine months ended 30 September 2008, which was
distributed to shareholders on 30 October 2008. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after today`s date or to reflect
the occurrence of unanticipated events. All subsequent written or oral forward-
looking statements attributable to AngloGold Ashanti or any person acting on its
behalf are qualified by the cautionary statements herein.
Date: 30/10/2008 08:21:50 Produced by the JSE SENS Department.
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