AngloGold Ashanti's (NYSE:AU), the world’s third-largest gold producer, reported Monday that profits from its Latin American operations dropped 52% from $92 million to $48 in the second quarter of this year.
The South African miner blamed rising costs, higher capital expenditure and a lower gold price as the main cause of its drop in the second quarter earnings.
In a presentation, the company said it expects to meet its full-year production target of 4.3 million ounces to 4.4 million ounces worldwide. It also said its moving ahead with the expansion of its Cripple Creek and Victor mine in Colorado, as well as the development of two mines in the Democratic Republic of Congo and a new mine in Western Australia.
The developments in the USA, Africa and Australia are scheduled to start producing next year, said AngloGold, which would boost its production towards 5 million ounces, with the group’s capital expenditure forecast at about $2.2 billion for 2012.