AngloGold Ashanti says it expects to make a headline loss of between $80million and $98million for the half year ended 30 June 2017.
The miner will release results for the period on the Johannesburg Stock Exchange (JSE) News Service on 21 August 2017.
With reference to the Listings Requirements of the JSE Limited, issuers are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding reporting period.
Shareholders have been advised that there is reasonable certainty that the headline loss for the period is expected to be between $80 million and $98 million, with a headline loss per share of between 19 cents and 23 cents.
Headline earnings and headline earnings per share (“HEPS”) for the half year ended 30 June 2016 (“comparative period”) were $93 million and 23 cents, respectively.
The basic loss is expected to be between $167 million and $185 million, with the basic loss per share between 41 cents and 45 cents. Basic earnings and earnings per share (“EPS”) for the comparative period were $52 million and 13 cents, respectively.
The expected overall decrease in headline earnings and basic earnings in the first six months of the year relative to the comparative period were primarily due to Impairment of certain of the South African assets affecting basic earnings amounting to $86 million (post-tax) or 21 cents per share
Once-off non cash provisions arising from the potential retrenchment costs relating to the South African operations of $47 million (post-tax) or 11 cents per share and the estimated costs of the settlement of silicosis class action claims and related expenditure (see below), which amounted to $46 million (post-tax) or 11 cents per share.
Higher operating costs due primarily to the impact of stronger local currencies in South Africa and Brazil, inflation, and changes in inventories and lower income from associates and joint ventures were also listed as reasons for the loss.