Global gold miner AngloGold Ashanti reported record earnings in 2010, and credited higher gold prices for the stellar results.
In a suite of reports released today, the South Africa-based company said it earned US$787 million last year, up from $708 million in 2009. Revenues were up 41%, from $3.916 billion in 2009 to $5.514 billion in 2010.
AngloGold Ashanti produced slightly less gold in 2010 compared to the previous year, 4.515 million ounces versus 4.599 million ounces, but the price of gold jumped 26%, from $974/oz to $1,227/oz. Total production costs in 2010 rose 26% from 2009, to $816/oz. Cash flow from operating activities, excluding hedge buy-back costs, were $1.669 billion in 2010, by far the best performance since 2006.
Chairman Tito Mboweni credited the company's vision in eliminating the 11.3 million-ounce gold hedge since 2008, as well as enhanced efficiencies at its operations, including the Geita Gold Mine in Tanzania, the Mponeng Plant in South Africa, and mines in South America.
• Record adjusted headline earnings (excluding the impact of accelerated hedge buy-backs) of $787m, a result of improved margins due to higher received prices;
• Production of 4.52Moz at a total cash cost of $638/oz, within exchange-rate adjusted guidance;
• Geita, Cripple Creek & Victor and South Africa turnarounds successfully executed;
• Complete elimination of the hedge book, thus providing full exposure to the prevailing gold spot price;
• Securing AngloGold Ashanti’s international investment grade credit ratings;
• Introduction of long-term tenor to the statement of financial position with the issue of two rated bonds maturing in 10 and 30 years and mandatory convertible bonds due in 2013; and
• A full year dividend of 145 South African cents per share (approximately 20 US cents per share), 12% higher than the
previous year of 130 South African cents (17 US cents per share).
• All injury frequency rate (AIFR) improved by 11% to 11.50 per million hours worked;
To see the full report, click here
Image by AngloGold Ashanti