AngloGold earnings jump as South Africa exits start to pay off

AngloGold earnings jump as South Africa exits start to pay off
Source: Bloomberg
Date: 04-02-2019 Time: 11:02:49:pm

AngloGold Ashanti Ltd. said full-year profit, excluding some one-time items, climbed more than sevenfold from 2017 after it shut and sold mines in South Africa and lowered amortization in Brazil.

Headline earnings for the period are expected to be between $207 million and $224 million, up from $27 million the previous year, the Johannesburg-based miner said in a statement on Monday.

Key Insights 

- The closure of its TauTona mine and sale of Moab Khotsong and Kopanang in South Africa is already bearing fruit as AngloGold focuses on its lowest-cost mines.

- The performance of the No. 3 gold producer was also buoyed after income from its Kibali operation in the Democratic Republic of Congo rose by $95 million.

- The turnaround at AngloGold lays down a marker as the Johannesburg-based miner weighs listing in either London or Toronto. That may come as the company hives off its remaining South African operations, people familiar with the situation said in December.

Market Reaction

- AngloGold shares fell 1 per cent as of 9:56 a.m. in Johannesburg, paring their gain over the past 12 months to 45 per cent.