AngloGold Ashanti, a global gold mining company said it expects a more than seven-fold surge headline earnings per share (HEPS) for the year to end-December.
The ramping up of production at AngloGold Ashanti’s Kibali mine in Democratic Republic of the Congo (DRC) lifts the company’s bottom line, as did lower development costs at an ore development project in Brazil.
The company was able to save costs due to the closure of its Tautona mine in 2017, as well as increased production at new assets, notably Kibali. This mine delivered income of $95 million during the period, or 23c per share in earnings.
AngloGold Ashanti expects to report headline earnings of between $297 million and $227 million during the period, between a 666 percent and 729 percent increase on the previous comparable period. Basic earnings are expected to rise to between $129 million and $137 million, after the previous comparative period’s basic loss of $191 million.
In the 2017 financial year, a once-off payment of $46 million, or 11c per share, weighed down the company’s performance. The costs were related to a settlement of silicosis class-action claims and related expenditures.
The company is in the process of rationalising its 14 assets, saying that this number may be inappropriate given its size.