| Tue 3 May 2011, 13:00 | | ANG - Anglogold Ashanti Limited - First quarter 2011 market update |
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ANG
ANANO
ANG - Anglogold Ashanti Limited - First quarter 2011 market update
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 LIMITED - FIRST QUARTER 2011 MARKET UPDATE
AngloGold Ashanti will publish detailed first-quarter earnings on 11 May
2011. Given that this is the first reporting period in the company`s
history without the effects of its hedge book, which was eliminated on 7
October 2010, the company deems it prudent to release this market update in
advance of its earnings.
AngloGold Ashanti is pleased to report that strong performances from its
operations in Continental Africa and the Americas during the first quarter
helped claw back much of the 20,000oz of production lost due to
unprecedented rainfall at its Sunrise Dam mine in Australia.
First quarter production, therefore, remains on track with original
guidance of 1.039Moz announced on 17 February 2011. Total cash costs will
be around $706/oz compared with original guidance of $675/oz to $700/oz,
given the combination of higher-than-anticipated oil prices and rising
royalties on the back of record gold prices.
Earnings attributable to equity shareholders are anticipated to be around
$241m for the quarter, higher than the $56m recorded during the previous
quarter. After eliminating fair value adjustments of the two convertible
bonds, adjusted headline earnings(1) are expected to be around $203m for the
quarter. Further details on a per share basis are provided in the table
below.
Improved cash flow per ounce of production, following the elimination of
all hedge contracts, has also made possible a further 15% reduction in Net
Debt(3) during the quarter from $1.3bn to $1.1bn.
Quarter Quarter Quarter
(All amounts in US cents per share)(2) ended ended ended
Mar 2011 Dec 2010 Mar 2010
Earnings per share attributable to Equity
Shareholders 62 15 43
Headline Earnings per share 62 21 46
Adjusted Headline Earnings / (Loss) per
share(1) 53 (199) 17
The above information has not been reviewed or reported upon by the
company`s external auditors.
Non-GAAP Measures: From time to time AngloGold Ashanti Limited may
publicly disclose certain "Non-GAAP" financial measures in the course of its
financial presentations, earnings releases, earnings conference calls and
otherwise. The group uses certain Non-GAAP performance measures and ratios
in managing the business and may provide users of this financial information
with additional meaningful comparisons between current results and results
in prior operating periods. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative to, the reported operating results or
cash flow from operations or any other measure of performance prepared in
accordance with IFRS. In addition, the presentation of these measures may
not be comparable to similarly titled measures that other companies use.
For further details, including reconciliation to GAAP measures, please refer
to AngloGold Ashanti`s quarterly and annual reports.
(1) Adjusted headline earnings is intended to illustrate earnings after
adjusting for:
- The unrealised fair value change in contracts that were still open
at reporting dates, as well as, the unwinding of the historic marked-to-
market value of the position settled in the period;
- Investment in hedge restructure transaction: During the hedge
restructure in December 2004 and March 2005 quarters, $83m and $69m in cash
was injected respectively into the hedge book in these quarters to increase
the value of long-dated contracts. The entire investment in long-dated
derivatives (certain of which have now matured), for the purposes of the
adjustment to earnings, will only be taken into account when the realised
portion of long-dated non-hedge derivatives are settled, and not when the
short-term contracts were settled;
- The unrealised fair value change on the option component of the
convertible bonds;
- The unrealised fair value change of the warrants on shares and the
embedded derivative.
-
During 2010 the Group completed the elimination of its hedge book which has
resulted in full exposure to prevailing spot gold prices.
(2) Calculated on the basic weighted average number of ordinary shares.
(3) Net Debt excludes Mandatory Convertible bonds issued in 2010.
ENDS
3 MAY 2011
JSE SPONSOR: UBS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Mike Bedford (Investor) +27 11 637 6273 mbedford@anglogoldashanti.com
Stewart Bailey(Investor) +1 2128364303 sbailey@anglogoldashanti.com
Certain statements made in this communication, including, without
limitation, those concerning 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, the completion of announced mergers and
acquisitions transactions, AngloGold Ashanti`s liquidity and capital
resources, and expenditure and the outcome and consequences of any
litigation proceedings or environmental issues, 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 including environmental approvals and actions,
fluctuations in gold prices and exchange rates, and business and operational
risk management. For a discussion of certain of these factors, refer to
AngloGold Ashanti`s annual report for the year ended 31 December 2010, which
was distributed to shareholders on 29 March 2011. The company`s 2009 annual
report on Form 20-F, was filed with the Securities and Exchange Commission
in the United States on April 19, 2010 and as amended on May 18, 2010.
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: 03/05/2011 13:00:01 Produced by the JSE SENS Department.
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