South Africa’s AngloGold (AU-N) says it expects adjusted first-quarter headline earnings to be "materially" lower than those in the final stanza of 2003, as gold production falls by 11%. Johannesburg Stock Exchange listing requirements define a movement of between 10% and 30% as material.
The world’s second largest gold miner says the drop in production is not unexpected, and is attributed to a slow resumption of its South African operations after the year-end shut down. The company also cites lower grades or mill throughputs at the Geita, Morila, and Cerro Vanguardia mines in Tanzania, Mali and Argentina, respectively. Anglogold also says that earnings in the last three months of 2003 benefited from an abnormal tax credit of US$7 million.
Still, the company expects to meet its previous production forecast (excluding contributions from Ashanti) for 2004 of 5.3 million oz.
Anglogold’s first-quarter financial results are due out on April 29.
Meanwhile, Ashanti Goldfields (ASL-N) says Ghana’s high court has approved its merger with Anglogold, reports Reuters. The approval was one of the final hurdles facing the proposed deal.
In late February, AngloGold inked a stability agreement with the Government of Ghana that spells out the government’s fiscal and regulatory responsibilities vis-a-vis its role as shareholder of Ashanti. The agreement protects the post-merger AngloGold Ashanti against increases in the royalty regime, taxes, duties and long-term mining lease.
Ashanti shareholders approved the deal in early April.
Under the deal, which was announced in May 2003, AngloGold is offering 29 of its own shares for every 100 Ashanti shares.
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