Anglogold posts solid quarter (October 31, 2001)

Vancouver — Strong-operating performance across the board propelled the world’s largest gold producer to a profit of US$76 million, or 36 per share in the latest quarter ended Sept. 30.

Anglogold (AU-N) saw its operating profit jump by 13% to US$135 million in the quarter, while production climb 3% to 1.78 million oz of gold. Total cash and production costs continued to fall hitting US$176 per oz and US$211 per oz respectively. The major realized a slightly higher gold price during the quarter of US$288 per oz.

“AngloGold has delivered a third successive improved quarter as a result of strong performances in all of its operating regions<" says the company's CEO, Bobby Godsell. "I am particularly pleased with our success in reducing operating costs."

Leading the profit parade was the company’s South African mines with production, total cash costs and operating profit all showing improvements over the previous quarter. The region contributed 1.17 million oz during the quarter with total cash costs coming in at US$184 per oz. The Great Noligwa mine in the Vaal River area accounted for 23% of Anglogold’s South African production in the quarter cranking out 267,910 oz at a total cash cost of US$118 per oz. The second most productive operation, TauTona in the West Wits area, saw gold out put climb 3% to 161,000 oz at a total cash cost of US$154 per oz.

The company’s share of production from its 5 operations in the African region jumped 9% during the quarter to 228,686 oz. at a total cash cost of US$131 per oz. The increase is due to the inclusion of Anglo’s newly minted 40% owned Yatela mine in Mali, which added 25,000 oz. at a cash cost of US$146 per oz.

Gold production in North America increased by 4% over the previous quarter to 134,678 oz at a total cash cost of US$199 per oz. The company’s 70% held Jerritt Canyon mine in Nevada saw production climb 1% during the quarter, adding 74,000 oz to the major, while the Cripple Creek and Victor operations in Colorado made up the remaining ozs.

Anglogold posted a 6% increase in production from its three mines in South America to 112,000 ozs.

In Australia region, production rose 14% over the previous quarter coming in at 134,000 oz from Anglogold’s interests in 4 mines. Cash costs to produce an oz of gold averaged US$197. The Sunrise Dam mine continues to lead the way for Anglogold in this region contributing 77,000 oz at a total cash cost of US$170 per oz.