Ghana Stock Exchange listed AngloGold Ashanti, reported recently that production in the third quarter September 10, rose five per cent, but it revised production targets for the year downwards mainly due to safety stoppages at Tau Tona mine near Carletonville. This is the second time in two successive quarters that AngloGold Ashanti has had to lower its target for the full year, with production now expected to be 4.55 million to 4.6 million ounces for the full year from the original target of about five-million ounces. In the June quarter, the group lowered its full-year production forecast to between 4.7 million and 4.8-million ounces from an initial target of about five-million ounces. However, the group produced 4.98 million ounces of gold last year. AngloGold said it had suspended underground operations at the Tau Tona operation to conduct an inspection of the steelwork along the mine's shaft system, which should take about two months to complete. The company reported four fatalities at its mines in the third quarter, which resulted in safety stoppages. The mine had been forecast to produce 29:000 oz of gold this year. Tau Tona could potentially be closed until the end of this year, while this remedial action is completed. The effect of this interruption has resulted in a revision of our annual guidance," CEO Mark Cutifani said. The group said third-quarter output rose to1 .1 87 million ounces due to continued improvements at the Geita mine in Tanzania and Vaal River operations. Geita continued its recovery under a new management team, delivering a 32 per cent rise in production to 83,OOO oz for the quarter. Vaal River mines output rose 20 per cent. "We continue to make breakthroughs in effecting the turnaround at Geita," CEO 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 for the quarter fell short of AngloGold's original target of about 1.2¬million ounces. The group reported an adjusted headline loss for the quarter of US$596 million as it continued to educate its hedge book. Excluding the hedge book, it posted headline earnings of US$163 million. AngloGold Ashanti said it spent US$797 million to reduce its hedge book to 4.3-million ounces, and expected a fall of 800,000 oz a year from next year to 2015, when it would be hedge free. The hedge book, entered into many years ago to fix future gold production at what was then an attractive price, diminished its attraction for investors, who take a view on gold companies based on movements in the gold price. Cutifani joined the growing list of mining executive warning against the negative effect on the industry of higher electricity tariffs, saying, Eskom’s proposed 45 per cent increase would push up AngloGold’s costs in South Africa from 13 per cent to about 25 per cent. Source: Graphic Business