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AngloGold Ashanti expects to produce almost 1.04 million ounces in first quarter

Published: 10:53 03 May 2011 EDT

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South Africa and New York listed gold producer AngloGold Ashanti (NYSE:AU, JNB:ANG) maintained its first quarter production guidance of 1.039 million ounces of gold despite a production hiccup at its Sunrise Dam Mine in Australia, which was hit by flooding earlier this year.


The Tier 1 gold producer also noted that cash costs would be slightly higher than originally forecast, at US$706 per ounce compared to guidance of $675 to $700 per ounce.  The higher cash costs was blamed on a combination of higher oil prices and rising royalty payments due to high gold prices.

Earnings attributable to shareholders are forecast to be around $241 million for the quarter, well above the $56 million reported for the fourth quarter of 2010.  The company also continued to cut its debt pile, reducing net debt by 15% to $1.1 billion.


Shares in the company fell 3.7% this morning, though this was in line with the wider gold sector which was in correction mode again today.


AngloGold is currently anticipating 2011 production between 4.55 million ounces and 4.75 million ounces at a total cash cost of $660- $685 per ounce. AngloGold Ashanti posted a reserve of 71.2 million ounces  at the end of 2010, more than replacing its production during the year.

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