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AngloGold expects lower costs

Nov 13 2008 17:45

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London - South Africa's Anglogold Ashanti expects cash costs for the fourth quarter to fall below the forecast level of $460 per ounce due to the weaker rand currency.

"If existing exchange rates hold, we could see them at $420 to $430," chief executive Mark Cutifani told the RBC gold conference in London.

AngloGold was in talks with a consortium of banks about the firm's $1bn bond that falls due in February, he added.

"The most likely scenario is some type of bridging facility," he said.

"The reason we would go for a bridge is it would give us time to look at longer-term capital options."

He also said Anglo American was not keen at the moment to dispose of its remaining 16 percent stake in the firm.

Anglo American has already sold the bulk of the majority holding it once held and has said it eventually wants to sell the rest of it to focus on industrial commodities.

Shares in AngloGold were down 6.5% at R170.11 at 16:10, underperforming the DJ Stoxx basic resources index, which was down 1.4%.

- Reuters

 
 
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