| Wed 30 Jun 2004, 9:06 | | ANGLOGOLD ASHANTI CFO COMMENTS AT UBS RESOURCES CO |
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AngloGold Ashanti CFO comments at UBS Resources Conference, SYDNEY
AngloGold Ashanti Limited
(formerly AngloGold 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 CFO COMMENTS AT UBS RESOURCES CONFERENCE, SYDNEY
Speaking at the UBS Resources Conference in Sydney earlier today, Jonathan
Best, AngloGold Ashanti`s CFO, said the company faced a tough second quarter.
He said revenue would be impacted by a US dollar spot price some $15 lower
than in the March quarter. Price volatility, with the price trading in a $50
range, was likely to see AngloGold Ashanti`s received price somewhat lower than
spot.
The Rand was 17 cents stronger against the US dollar over the period,
translating to an increase of some $7 per ounce in the company`s dollar
denominated cash costs.
Best said AngloGold expected to meet the annual production target previously
indicated of 5.3 million ounces and to be at, or close to, its previously
targeted cash cost of $254/oz for the year.
Although production from Ashanti`s operations continued to suffer from the
effects of under-capitalization, good progress was being made with the
integration of the Ashanti assets and the enlarged company. The newly combined
management team had implemented a number of measures to optimise production over
the life of these assets.
Best said as the company had previously indicated these measures were
expected to take four to six quarters to become apparent.
He said notwithstanding these present challenges, the future held great
promise - the combination of Ashanti`s ounce-rich, people-rich operations with
the capital and technology resources of AngloGold gave the company an
outstanding opportunity to create value and extend the productive life of these
assets.
In addition, the newly combined company had an organic growth pipeline of
seven approved projects, which would add some 17 million ounces to the company`s
production profile. A further five projects are under consideration; if
approved, these would add a further 13 million ounces. Neither of these
categories of project includes the promise of Obuasi Deeps, which will be
confirmed by a multi-year drilling programme now underway.
In regard to greenfields exploration, AngloGold Ashanti continues to examine
targets in what are for the company `new frontier` regions, including Russia and
China.
Finally the company will continue its activities aimed at both broadening and
deepening the customer base for gold jewellery.
Johannesburg
30 June 2004
Ends
Queries Tel e-mail
Andrea Maxey +61 8 9425 4604 amaxey@anglogoldashanti.com.au
Steve Lenahan +27 1 637 6248 slenahan@anglogoldashanti.com
Michael Clements +27 1 637 6647 mclements@anglogoldashanti.com
Charles Carter +1 800 417 9255 cecarter@anglogoldashanti.com
Disclaimer
Except for the historical information contained herein, there are matters
discussed in this news release that are forward-looking statements. Such
statements are only predictions and actual events or results may differ
materially. For a discussion of important factors including, but not limited to
development of the Company`s business, the economic outlook in the gold mining
industry, expectations regarding gold prices and production, and other factors,
which could cause actual results to differ materially from such forward-looking
statements, refer to the Company`s annual report on the Form 20-F for the year
ended 31 December 2003 which was filed with the Securities and Exchange
Commission on 19 March 2004.
Date: 30/06/2004 08:13:15 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
