AngloGold Ashanti’s first quarter was marred by a marked underperformance at its South African operations despite a huge improvement in safety at its local mines, but the company kept its full-year targets intact. AngloGold, which mines about 40% of its gold in SA, said total group production of 830,000oz in the first three months of the year compared with 861,000oz in the year-earlier period, while all-in costs ballooned to $1,137/oz from $924/oz a year earlier. The first quarter for South African mining companies is generally a tough one as mines are restarted after the year-end break. In AngloGold’s experience this year, this was compounded by geological issues as well as deviations from mining plans. The South African mines produced 198,000oz at an all-in sustaining cost of $1,327/oz compared with 236,000oz at $919/oz for the first quarter of 2016. AngloGold received $1,216/oz for the gold it sold during the quarter. The strengthening of the rand, which gained 16% against the do...
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