AngloGold Ashanti Ltd. (ANG), the third-largest producer of the metal, returned to profit after the price of bullion rose for the first quarter in four.
Adjusted headline earnings, which exclude one-time items, were $576 million, or $1.48 a share, in the three months ended Sept. 30 from a loss of $135 million, or $0.35 a share, in the previous quarter, the Johannesburg-based company said in a statement.
The company, with 21 operations in 10 countries, is cutting jobs, spending and exploration and slowing production at higher-cost mines as it adjusts to a gold price down 22 percent this year. In September, AngloGold said it had started cheaper output from operations in Democratic Republic of Congo and Australia earlier than planned. In the same month, it settled wage increases that ended a 48-hour strike in South Africa, where it produced 33 percent of its gold in the second quarter.
“We’ve delivered a decisive response to the lower gold price with all operating regions showing better production and we’ve seen cost improvements at every level,” Chief Executive Officer Srinivasan Venkatakrishnan said in the statement.
The company produced 1.04 million ounces in the three months ended Sept. 30, more than a forecast of 950,000 ounces to 1 million ounces. Output was 935,000 ounces in the second quarter. The price of bullion rose 7.7 percent in the period.
Total cash costs dropped 10 percent to $809 an ounce, better than the forecast of $860 to $890. The average price of the precious metal was $1,328.45 in the third quarter compared with $1,419.69 in the previous three months.
AngloGold maintained its July estimate for full-year production of 4 million ounces to 4.1 million ounces.
To contact the reporter on this story: Kevin Crowley in Johannesburg at email@example.com