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Johannesburg - AngloGold Ashanti [JSE:ANG], Africa's top bullion producer, swung back into profit in the third quarter due to lower costs and production rising 12% to over a million ounces, the company said on Wednesday.
Adjusted headline earnings for the third quarter were $576m compared with a loss of $135m in the previous three-month period.
Total cash costs in the three months to the end of September were $809/oz, an improvement of 10 percent over the preceding quarter.
"AngloGold Ashanti responded swiftly to a sharp drop in the gold price this year, cutting unprofitable ounces from its production base," the company said.
It added that it would look to continue removing unprofitable ounces from its production base in order to further improve cash flow.
Ghana is one place where production is not profitable.
Chief executive Srinivasan Venkatakrishnan told Reuters in August that the cost structure at AngloGold's flagship Ghana gold mine was unsustainable, and the company was looking to make cuts there.
Gold companies are having to contend with depressed prices.
During the period under review, the average gold price declined 6% compared to the previous quarter to $1 326/oz, but in rand terms was down just 1% because of the South African currency's decline against the dollar.
Adjusted headline earnings for the third quarter were $576m compared with a loss of $135m in the previous three-month period.
Total cash costs in the three months to the end of September were $809/oz, an improvement of 10 percent over the preceding quarter.
"AngloGold Ashanti responded swiftly to a sharp drop in the gold price this year, cutting unprofitable ounces from its production base," the company said.
It added that it would look to continue removing unprofitable ounces from its production base in order to further improve cash flow.
Ghana is one place where production is not profitable.
Chief executive Srinivasan Venkatakrishnan told Reuters in August that the cost structure at AngloGold's flagship Ghana gold mine was unsustainable, and the company was looking to make cuts there.
Gold companies are having to contend with depressed prices.
During the period under review, the average gold price declined 6% compared to the previous quarter to $1 326/oz, but in rand terms was down just 1% because of the South African currency's decline against the dollar.
