Anglogold posts solid quarter (July 31, 2001)

Vancouver Despite lower production, the World’s largest gold producer saw earning jump 19% in the second quarter of 2001.

Anglogold (AU-N) posted a profit of US$63 million, or 62 per share in the latest quarter ended June 30. Driving the earnings growth was a 4% drop in total cash costs to produce an oz. of gold. The major cranked out 1.7 million oz. of gold at total cash costs of US$185 per oz. In the first six months of the year, the company produced 3.5 million oz. at a total cash cost of US$189 per oz.

The Africa region contributed US$22 million in operating profit by producing 211,000 attributable oz. at total cash costs of US$121 per oz. AngloGold’s strategy to reduce risk through geographic and orebody diversification continued to pay dividends.

"For the quarter, production from outside South Africa grew to 33%, operating profits to 41%, and cash earnings to 57%,” says Anglogold’s CEO Bobby Godsell.

Averting a major strike, the company signed a wage agreement with the National Union of Mineworkers (NUM) in South Africa last week.

"This deal locks in a two-year contract," adds Godsell. "The net effect of this wage agreement on our bottom line is within the planning and performance parameters we have set for our South African business units."