Operational performance in terms of Production from retained operations of AngloGold Ashanti is expected to increase by 4% in 2018 to 1.578ounce from 1.517 ounce for the half year ended
30 June 2017 (“comparative period”).
This is due to strong production improvements from Sunrise Dam, Kibali, Iduapriem, Mponeng and Tropicana. International operations contributed 87% and South African operations 13% respectively to the Group’s production from retained operations.
Report indicates that given the sale of Moab Khotsong and Kopanang mines in the first quarter of 2018, and the closure of TauTona at the end of last year, which together resulted in a net year on year reduction of 180,000oz, production for the period is expected to be 1.629 Moz, compared to 1.748 Moz in the comparative period.
The Company expects to report positive basic and headline earnings for the six months ended June 30, 2018 represents a turn-around from the losses reported for the comparative period.
The Company has reasonable certainty that headline earnings for the period are expected to increase to a profit of between US$91 million and US$108 million, with headline earnings per share of between 22cents and 26 cents.
According to current report, Headline loss and headline loss per share for the comparative period were $89millionand 22cents, respectively. Basic earnings for the period are expected to increase to a profit of between $16million and $51million, with basic earnings per share between 4 cents and 12 cents.
This includes the adverse impact of $67 million, or 16 cents per share(post-x) related to the derecognition of the Mine Waste Solutions Uranium plant in South Africa, given that, under current market conditions, the plant is unlikely to be utilized.
Impairments on certain South African assets of $6million (post-tax) or 21 cents per share were accounted for in the
comparative period. Both the asset derecognition and the impairments, are non-cash items and have been excluded from headline earnings.
Basic loss and basic loss per share for the comparative period were $176million and 43 cents, respectively.
Expected increases in both basic and headline earnings for the period were due to an improved operating performance, reflected in the 4% improvement in production from retained operations.
