London, Nov. 2, 2009 (PR Newswire UK Disclose) --
AngloGold Ashanti Limited \ (Incorporated in the Republic of South Africa)
(Reg. No.1944/017354/06) \ ISIN Number: ZAE000043485 \ NYSE symbol: AU \ JSE
share code: ANG
Corporate Affairs Department: \ 3rd Floor \ 76 Jeppe Street \ Johannesburg \
2001 \ South Africa
Tel +27 (0)11 637 6317 \ Fax +27 (0)11 637 6399/6400 \ www.AngloGoldAshanti.com
news release
2 November 2009
ANGLOGOLD ASHANTI OUTPUT UP 5% ON GEITA, VAAL RIVER TURNAROUNDS
(JOHANNESBURG) -- AngloGold Ashanti said third quarter production rose
5 percent as a result of continued improvements at its Geita mine in Tanzania
and fewer safety related interruptions at its Vaal River operations in South
Africa.
"We continue to make breakthroughs in effecting the turnaround at Geita,''
Chief Executive Officer Mark Cutifani said. "We've also made some strong safety
gains at our Vaal River operations, an area that continues to be our top
priority.''
Production rose 5 percent to 1.187 million ounces in the three months through
to the end of September, broadly in line with the company's guidance for the
period. Total cash costs were within the guided range at $534 per ounce,
despite the impact of higher wages and power prices in South Africa and
stronger operating currencies.
During the quarter, AngloGold Ashanti invested $797 million to complete a
restructuring of its hedge book at prices significantly below current market
prices. The company now has hedge commitments of 4.3 million ounces, less than
a year's production. It anticipates a decline in this position of
800,000 ounces a year between next year and 2015, when it will be hedge free.
AngloGold Ashanti's adjusted headline earnings, excluding the cost of these
hedge buybacks, were $163 million, in line with last quarter's record
$167 million. Including the cost of the hedge buyback, which was reflected in a
lower received gold price, the company reported an adjusted headline loss of
$596 million, or $1.65 a share.
"Our decision to move on the hedge book in July has been vindicated by the run
in the gold price to record levels,'' Cutifani said. "We've slashed the book by
almost two thirds in the past two years against the backdrop of a rising price,
and that has generated enormous value for the company and its owners.''
Geita continued its recovery under its new management team, delivering a
32 percent rise in production to 83,000 ounces for the quarter.
