Rising metal prices help AngloGold Ashanti swing back to profit
AngloGold Ashanti (JSE:ANG) (NYSE:AU), the world’s third-largest producer of the metal, said Friday it expects to swing to profit in the first half of the year, thanks to higher metal prices and weaker currencies in the countries it operates in.
It expects a net profit of between $45 million and $59 million for the six months ended June 30, 2016, compared with a net loss of $143 million in the same period last year.
The South African miner, which is due to report results on August 15, said it expected a net profit of between $45 million and $59 million for the six months ended June 30, 2016, compared with a net loss of $143 million in the same period last year.
Gold prices, which are up about 25% so far this year, helped AngloGold’s revenue, as did first-half weakness in the currencies of South Africa, Brazil, Australia and Argentina, some of nine countries where the firm operates.
The miner, Africa’s top gold producer, noted that a “continued focus on cost control across the portfolio,” and a $33 million saving on interest payments will also lift its results.
In terms of output, AngloGold said it expected to report production of 1.75-million ounces from continuing operations for the six months, compared with 1.88-million ounces the year before.