AngloGold Ashanti Market Update
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| Acrobat Version |
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| Thursday, April 02, 2009 |
AngloGold Ashanti expects first-quarter production of approximately 1.1 million ounces, 2.5 percent below previous guidance of 1.13 million ounces and this is anticipated to have a proportionate impact on per unit cash costs.
The shortfall in output is due primarily to the slow start-up of the company’s South African mines following the traditional Christmas break, as well as stoppages undertaken by management to improve safety. AngloGold Ashanti's Geita mine also experienced a plant breakdown which contributed to lower production volumes. These issues have now been resolved and all other mines either achieved or exceeded their first-quarter targets with strong performances from Sunrise Dam, Siguiri and Obuasi, which is successfully achieving its turnaround targets.
Full-year guidance remains unchanged at 4.9 million to 5.0 million ounces at a total cash cost of $435 to $450 an ounce, based on these previously stated assumptions: R9.75/$, A$0.675/$, BRL2.25/$, Argentinean pesos 3.65/$ and fuel at US$50 per barrel.
"We've successfully addressed a number of challenges in the first quarter, while continuing our drive to improve safety," Chief Executive Officer Mark Cutifani said. "I'm confident that we remain well placed to meet our objectives for the year."
| Queries |
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Tel: |
Mobile |
E-mail: |
| Charles Carter (Investor Relations) |
+27 (0) 11 637 6385 |
(0) 82 330 5373 |
cecarter@AngloGoldAshanti.com |
| Stewart Bailey (Investor Relations - USA) |
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+1 646 717 3978 |
sbailey@anglogoldashanti.com |
| Joanne Jones (Media) |
+27 (0) 11 637 6813 |
+27 (0) 82 896 0306 |
jjones@anglogoldashanti.com |
Disclaimer
Certain statements made in this communication, including, without limitation, those concerning AngloGold Ashanti’s strategy to reduce its gold hedging position including the extent and effects of the reduction, the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and completion of acquisitions and dispositions, AngloGold Ashanti’s liquidity and capital resources, including its intentions and ability to refinance its $1 billion convertible bond, and expenditure and the outcome and consequences of any pending litigation proceedings, contain certain forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of such factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2008, which was distributed to shareholders on 27 March 2009. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglgoldashanti.com and under the “Investors” tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti. | |
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