AngloGold weighs up its local options
The group sticks to its full-year production target but SA underperformance offsets world gains
AngloGold Ashanti is reviewing its underperforming South African mines after a poor start to the year offset increased output in its international portfolio, prompting the world’s number three gold miner to study its options for the Kopanang and TauTona mines. The South African mines had a difficult March quarter, posting a considerable loss despite a stellar safety performance and the group’s first fatality-free first quarter. They produced 198,000oz at an all-in sustaining cost of $1,327/oz versus 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 mines in SA, which contributed about a quarter of the company’s gold output in the March period, dragged group production down to 830,000 oz, compared with 861,000oz a year earlier. Deutsche Bank’s Patrick Mann said: "AngloGold’s international business remains the attractive component of the company … with all-in sustaining costs below $1,000 an ounce and growth p...
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