AngloGold sees return to profit as it exits SA mines

AngloGold Ashanti [JSE:ANG] said it returned to profit in the first half after the producer of the metal realised better prices for its output and it exited some South African operations.

So-called headline earnings, which exclude one-time items, probably ranged from $91m to $108m in the six months ended June 30 from a loss of $89m a year earlier, the Johannesburg-based company said in a statement on Thursday.

Production climbed 4% to 1.59 million ounces from a year earlier, while the average gold price received rose 6%, it said.

AngloGold halved its South African output after selling the Kopanang and Moab Khotsong mines in February, following the closure of the TauTona mine announced last year. Operations outside the country now account for 87% of the company’s business.

AngloGold’s South African mines have dragged down the company’s performance in recent quarters as aging infrastructure, reserve depletion and accidents have raised costs and reduced production.

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