AngloGold Sees Profit Eroded by Costs Incurred in MaliKevin Crowley
AngloGold Ashanti Ltd., the world’s third-largest gold producer, said second-quarter profit will be eroded by costs from closing its Yatela mine in Mali and reorganizing operations in Ghana.
The changes will “impact earnings,” the Johannesburg-based producer said today in a statement, without giving figures. AngloGold will also provide for a $51 million writedown on its 42.4 percent stake in Rand Refinery Ltd., which processes the precious metal in South Africa.
AngloGold is reducing costs and “improving the overall quality of its portfolio” after gold fell 28 percent last year. The company had previously announced the closing of Yatela, and is building new mine infrastructure and reducing the workforce at its Obuasi mine in Ghana.
Harmony Gold Mining Co., a partner in Rand, made a 125 million-rand ($11.9 million) provision, it said in a separate statement. Sibanye Gold Ltd., which also owns a stake in the refinery, will make a 316 million-rand provision, it said in a statement.
The provisions arise from a loan related to “challenges encountered in the implementation of a new enterprise resource planning system” at Rand, Sibanye said.
Bullion traded up 0.1 percent to $1,295.51 an ounce at 12:25 p.m. in Johannesburg.