Hi MD. On the one hand we have big producers complaining about
low gold prices then we have these same producers telling the world
how low a price they can produce an ounce of gold for.
Seems like a pretty stupid thing to be doing kind of like the IMF
telling the world they are thinking of selling gold so the price can go down before they sell. You think maybe they have a good reason for doing this.??
AngloGold positive on year after tough qtr
By Darren Schuettler
JOHANNESBURG, April 30 (Reuters) - AngloGold Ltd , the world's biggest gold producer, said on Friday it was on track to produce seven million ounces of gold this year after emerging from a first 1999 quarter hit by operational problems.
The Johannesburg-based gold miner reported a 29 percent jump in attributable profit to 611 million rand ($101 million) in the three months ended March 31.
However, after stripping out exceptional items, AngloGold's earnings slipped three percent to 493 million rand.
"In light of the operational problems we have had, they are good results," AngloGold executive director of finance Jonathan Best told analysts at a results briefing. AngloGold said some of its mines were affected by seismic events and mechanical problems as well as planned repairs to existing infrastructure.
Shares in the bullion giant were up 500 cents or 1.83 percent at 278.00 rand on the Johannesburg bourse on Friday.
AngloGold's results included for the first time production from the North and South American mines acquired from sister-company Minorco SA for $550 million.
The former Minorco mines in the United States, Brazil and Argentina boosted AngloGold's total gold output by eight percent to 53,711 kg from 49,914 kg in the previous December quarter. This was ahead of the company's revised output forecast of 52,000 kg for the March quarter.
"Management remains confident of achieving the targeted production levels for the year of seven million ounces, at cash costs of around $210 per ounce," AngloGold chief executive Bobby Godsell said in his quarterly report.
The Minorco mines also helped trim AngloGold's cash costs to $209 per ounce from $224 an ounce in the December quarter. Best said the company would focus on dollar cash costs in the future.
When it was originally formed 18 months ago through a merger of Anglo American Corp's bullion assets, AngloGold executives set a cash cost target of 40,000 rand, or $250 per ounce, for all its operations.
At current exchange rates, the target is now $200 per ounce and mine managers will be pressed to meet that target, said Alan Smith, executive director of South African operations.
"We still see that as a very strong measure of our operations," Smith said.
The March quarter included exceptional items related to the Minorco assets and changes to South Africa's tax regime.
Best said 342 million rand in goodwill related to the Minorco acquisition was written off in the March quarter.
The sale of a 21.5 percent stake in gold miner Driefontein, which is set to merge with South Africa's Gold Fields Ltd , will result in a book profit of 545 million rand accounted for in the second quarter.
AngloGold said that to secure pricing for production from the Minorco mines it increased its hedge position by 8.7 percent to 12.9 million ounces spread over ten years -- equivalent to a year and nine months of production.
reuters.com |
