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AngloGold Ashanti says its gold production, earnings dropped significantly in 2021

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(Kitco News) -AngloGold Ashanti (NYSE: AU), one of the largest gold producers globally, today reported that its gold production in 2021 is expected to be 2.472Moz, which is 19% lower compared to 3.047Moz (which included 241koz from its previously owned South African operations) produced in 2020.

The company explained that production for 2021 was lower than the prior year mainly due to the sale of the South African operations, the company undertaking significant reinvestments across key assets, lower realized grades across certain operations, the temporary suspension of underground mining activities at Obuasi, as well as the continued impact of the COVID-19 pandemic on production and costs.

The impact on production from COVID-19 was estimated by the company at 47koz for 2021, mainly affecting the company’s operations in Ghana, Brazil and Argentina.

However, the company noted that its 2021 production is within the revised guidance issued on 6 August 2021. COVID-19 impacts were excluded from the revised guidance.

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Importantly, the company also announced that its headline earnings for the period are expected be between $572 million and $642 million, with headline earnings per share of between US 137 cents and US 153 cents, a decrease of 36% to 42% from the comparative period.

AngloGold Ashanti added that expected overall decrease in earnings for the period is primarily due to lower gold sales volumes, higher operating costs, unfavourable foreign exchange movements, increased exploration and evaluation costs, as well as lower income from joint ventures.

AngloGold Ashanti, with its head office in South Africa, is an independent, global gold mining company with a diverse portfolio of operations, projects and exploration activities across nine countries on four continents. The company is the third largest gold producer globally and the largest on the African continent.

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