AngloGold profit almost double in Q1 and plans investments of $1.9 billion to boost production

Africa's largest gold miner AngloGold Ashanti (NYSE:AU) posted first-quarter earnings Thursday of $429 million, which more than double the same period last year, despite a drop in production on the year.

The Johannesburg-based company also announced it has approved $1.9 billion to be spent over the next five years to grow its production by expanding the Cripple Creek and Victor mine (CC&V) in the U.S. and developing the Mongbwalu and Kibali projects in the Congo.

AngloGold said it continues to forecast full year output of between 4.3 million ounces and 4.4 million ounces at a total cash cost of $780/oz to $805/oz. It expects second quarter production to be around 1.04 million ounces.

The miner is also closely watching the political situation in Mali, where it operates several mines, following the recent coup and subsequent change in mining minister.

"The real risk is South Africa," Chief Executive Mark Cutifani said, adding that he expects production in the country to be up between 30,000 and 50,000 ounces in the second quarter.