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Hedge book sale knocks AngloGold

Oct 30 2008 09:07

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Johannesburg - Africa's largest gold producer AngloGold Ashanti on Thursday posted an adjusted headline earnings per share loss of US34c for the September quarter after selling a part of its gold hedge early.

The group said it incurred the adjusted headline loss of $119m after reducing its hedge book commitments by 580 000 ounces during the September quarter.

AngloGold, the world's No. 3 producer, which has one of the biggest forward sales among its peers, said it was on track to reduce book to about 6.0 million ounces by year-end.

AngloGold had reported a re-stated headline adjusted loss per share of US307c in the June quarter.

An average of estimates by six analysts surveyed by Reuters showed AngloGold was expected to return to profit, and post an adjusted headline earnings per share of US26c.

The company's profits also took a knock in the June quarter from a once-off loss for selling a big part of its gold hedge.

Production in the quarter rose 1 percent to 1.265 million ounces.

Total cash costs for the quarter rose to $486 per ounce from the June quarter's $434 an ounce due to input cost inflation, annual wage increases, higher power tariffs and inventory adjustments. AngloGold had projected a rise to $490 per ounce.

- Reuters

 
 
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