| Wed 17 Feb 2010, 8:00 | | ANG - Anglogold Ashanti - Anglogold Ashanti posts record fourth quarter profit |
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ANG
ANANO
ANG - Anglogold Ashanti - Anglogold Ashanti posts record fourth quarter profit,
boosts dividend
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
AngloGold Ashanti Limited\(Incorporated in the Republic of South Africa)
(Reg. No.1 944/0 17354/06)\
ISIN Number: ZAE00 0043485\
NYSE symbol: AU \ JSE share code: ANG
Corporate Affairs Department:\3rd Floor\76 Jeppe Street\
Johannesburg\2001\South Africa
Tel +27 (0) 11 637 6317\Fax +27 (0) 11 637 6399/6400\
www.AngloGoldAshanti.com
News Release
ANGLOGOLD ASHANTI POSTS RECORD FOURTH QUARTER PROFIT, BOOSTS DIVIDEND
(JOHANNESBURG) - AngloGold Ashanti said it would increase its final dividend
after fourth - quarter adjusted headline earnings rose to a record $228m on a
higher gold price and increased production from Continental Africa and South
America.
`There`s a strong level of confidence in our ability to generate cash over the
long term as we continue to make improvements to the operational side of our
business,` Chief Executive Officer Mark Cutifan is a id. `The in creased
dividend is a sign of that growing confidence.`
The final dividend of 70 South African cents a share is 17% more than the
interim dividend of 2009 and the total dividend declaration of 130 South
African cents, a 30% improvement on 2008`s final declaration. Adjusted headline
earnings rose to $228m, or 62 US cents a share for the three months to December
31, compared with $162m, or 45 US cents in the previous quarter.
The figure for the third quarter excludes the cost of buying back hedge
contracts.
AngloGold Ashanti has over the past year reduced net debt by a third to $868m
and cut its hedge commitments by more than two thirds to 3.9 million ounces in
order to increase exposure to the gold price. Now, with the financial platform
in place, the company is implementing its Project ONE business improvement in
initiative to lower costs and increase production in coming years.
`The hedge book is now less than a year`s production and about 5% of reserves`,
Cutifani said. `We`ve taken the rump of the hedge out and will continue to
look for the right opportunities to increase our exposure to the gold price.`
After accounting for the depletion in 2009 and the sale of Boddington,
AngloGold Ashanti`s reserves in creased by 5% to 71.4 million ounces.
This includes a 2.3 million ounce contribution from Tropicana and 4.2 million
ounces from the Kibali gold project in the Democratic Republic of Congo.
The company improved its safety performance in key areas during the fourth
quarter. The lost time injury frequency rate improved by 7% to 6.54 per million
hours worked during the quarter. Regrettably, two of the company`s employees
were fatally injured in separate incidents in Guinea and South Africa.
Production of 1.182 Moz during the quarter was ahead of guidance of 1.16 Moz.
Total cash costs of $5 98/oz were marginally above guidance of $ 590/oz because
of stronger-than-expected operating currencies in South Africa , Australia and
Brazil and non-cash deferred stripping charges.
The South American division, with mines in Argentina and Brazil, increased
production by 8% from the previous quarter to 170,000 ounces at a total cash
cost of $386/oz. Production from the Continental Africa division in creased by
3% to 401,000 ounces at a cost of $6 65/ oz.
AngloGold Ashanti`s South African mines were affected by safety-related stop
pages, with production declining 7% to 448,000 ounces and costs rising 10% to
$575/oz. The two-month stoppage at Tau Tona to complete a shaft inspection and
associated infrastructure repairs was concluded on schedule at the end of
December and the mine restarted as expected in early January.
In order to accelerate the improvements from the South African operating
division Robbie Lazare, formerly the executive vice president in charge of
human resources, has been appointed executive vice president of South Africa
after completing the design and roll out of AngloGold Ashanti`s human resources
model. Laz are will assume his new responsibilities immediately and has already
begun work on developing strategies to mitigate cost inflation at the South
African division, which faces the effects of higher power tariffs and a strong
currency.
`There are a number of quick wins we can get in South Africa in the short term
while we work to ad dress a sustainable long-term future,` Cutifani said.
`We`ll provide an update on Robbie`s progress in May, when we release our first
quarter results.`
Richard Duffy will continue to over see the growing portfolio in Continental
Africa, which includes the Kibali and Mongbwalu projects in the DRC, the
Sadiola Deeps project in Mali and continued improvements sought in Ghana and
Tanzania.
Production in 2010 is anticipated to be between 4.5 Moz and 4.7 Moz at a total
cash cost of $590/ oz - $ 615/oz . These figures account for the sale of Tau
Lekoa, the ongoing leach-pad issues at CC&V and safety stoppages in South
Africa. They also assume an exchange rate of R7.70/$.
ENDS
Contacts
Tel:
Alan Fine (Media) +27 (0) 11 637 6383
Joanne Jones (Media) +27 (0) 11 637 6813
Sicelo Ntuli (Investors) +27 (0) 11 637 6339
Stewart Bailey (Investors) +1 212 836 4303
Mobile:
Alan Fine (Media) + 27 (0) 83 325 0757
Joanne Jones (Media) + 27 (0) 82 896 0306
Sicelo Ntuli (Investors) +27 (0) 71 608 0991
Stewart Bailey (Investors) +1 646 338 4337
E-mail:
Alan Fine (Media) afine@anglogoldAshanti.com
Joanne Jones (Media) jjones@AngloGoldAshanti.com
Sicelo Ntuli (Investors) sntuli@anglogoldashanti.com
Stewart Bailey (Investors) sbailey@anglogoldashanti.com
Certain statements made in this communication, including, with out limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic out
look for the gold mining industry, expectations regarding gold prices,
production, cash costs and other operating results, growth prospects and out
look 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, and expenditure and the outcome and consequences of any pending
litigation proceedings, cont ain certain forward-looking statements regarding
AngloGold Ashanti`s operations, economic performance and financial condition.
Al though 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 2008, which was distributed to shareholders on 27 March 2009 and
the company`s annual report on Form 20-F, filed with the Securities and
Exchange Commission in the United States on May 5, 2009 as amended on May 6,
2009. 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.
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the `Investors` tab
on the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.
Date: 17/02/2010 08:00:02 Produced by the JSE SENS Department.
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