Johannesburg - AngloGold Ashanti [JSE:ANG]
the world’s third-largest gold miner, expects another strong quarter after posting record third-quarter earnings on the gold price, its chief executive said on Wednesday.
“We would expect the fourth quarter to be a strong one,” Mark Cutifani
said on a conference call with journalists after the group reported record third quarter adjusted headline earnings per share that beat market expectations.
The group also announced it was moving to quarterly dividends and Cutifani said its policy would be to fund this with cash flows while still keeping enough for its ambitious growth programmes and expansion.
“We will not borrow to fund a dividend,” he said, adding the group would also not tie its dividend policy to the gold price. Beat expectations
Its earnings beat expectations as bullion’s record run filled its coffers.
The average gold price was up about 13% to just over $1 700 an ounce during the quarter to the end of September compared to the previous one.
This trend flowed smoothly to the bottom line of the global miner, which said it was now moving to quarterly dividends and declared one of 90 South African cents.
“Strong performances from continental Africa and South America, along with full exposure to a record gold price and weaker currencies in Brazil and South Africa drove third-quarter earnings and cash flow generation to their highest levels ever during the third quarter,” the group said in a statement.
Adjusted headline earnings per share rose to 118 US cents in the July-September period from 89c in the previous quarter, an increase of almost 25% that beat a Reuters poll of six analysts which had forecast a result of 113.4c.
Adjusted headline earnings in total were a record $457m.
But the group slightly lowered its production outlook for all of 2011 to 4.33 million ounces from 4.45 million because of increased safety stoppages in South Africa and other factors.