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Johannesburg - Africa's top bullion producer, AngloGold Ashanti [JSE:ANG], reported an almost 40% decline in full year earnings for 2013 as the precious metal's spot price posted its biggest drop in three decades, the company said on Wednesday.
AngloGold said full-year adjusted headline earnings were $599m, or 153 US cents per share, compared with $988m or 255 US cents per share in 2012.
However, in the three months to the end of December, adjusted headline earnings amounted to $164m, a 49% improvement on the previous quarter's $110m.
The company also said it would not declare a final dividend "as it has elected to prioritise its cash flow at this stage for debt repayment and for the completion of existing capital growth projects".
AngloGold's fall in full-year earnings came despite a 4% increase in production to 4.105 million ounces, the company's first annual rise in output in nine years.
AngloGold Ashanti took decisive action to counter the sharp drop in the gold price in 2013, with key initiatives to enhance revenue and reduce overhead and operating costs while maintaining the long-term optionality of the business.
The company said production increased after it had successfully cut spending and commissioned two new mines. Additional, profitable production growth is anticipated in 2014.
The company has more than halved corporate costs and cut exploration spending by focusing on three core regions, while the completion of its two flagship projects are expected to result in a drop in capital investment.
"We're intensifying our drive to achieve additional efficiencies this year," said Ron Largent, chief operating officer: international.
AngloGold said full-year adjusted headline earnings were $599m, or 153 US cents per share, compared with $988m or 255 US cents per share in 2012.
However, in the three months to the end of December, adjusted headline earnings amounted to $164m, a 49% improvement on the previous quarter's $110m.
The company also said it would not declare a final dividend "as it has elected to prioritise its cash flow at this stage for debt repayment and for the completion of existing capital growth projects".
AngloGold's fall in full-year earnings came despite a 4% increase in production to 4.105 million ounces, the company's first annual rise in output in nine years.
AngloGold Ashanti took decisive action to counter the sharp drop in the gold price in 2013, with key initiatives to enhance revenue and reduce overhead and operating costs while maintaining the long-term optionality of the business.
The company said production increased after it had successfully cut spending and commissioned two new mines. Additional, profitable production growth is anticipated in 2014.
The company has more than halved corporate costs and cut exploration spending by focusing on three core regions, while the completion of its two flagship projects are expected to result in a drop in capital investment.
"We're intensifying our drive to achieve additional efficiencies this year," said Ron Largent, chief operating officer: international.
