World number three gold miner AngloGold Ashanti on Thursday reported a 67 percent increase in adjusted headline earnings per share to 334 cents in the June quarter from 200 cents in the March quarter.
The median of eight analysts surveyed by I-Net Bridge had expected adjusted HEPS of 367 cents. Forecasts ranged from 300 cents to 449 cents.
An improved performance
The improved earnings were due to higher production, higher received prices and lower costs, which resulted in an improved financial performance for the June quarter, AngloGold Ashanti said.
The group declared an interim dividend per share of 210 cents, up 24 percent from 170 cents in the previous comparative period.
Analysts had expected an interim dividend of 236 cents, with forecasts ranging from 62 cents to 300 cents.
During the June quarter, AngloGold Ashanti generated gold production of 1.415 million troy ounces, up six percent from 1.340 million oz in the March quarter.
At its March quarter result, the miner estimated its June quarter output at 1.483 million oz.
The gold price
The gold price received during the June quarter was R125 409 per kilogram, four percent below the average closing rand gold price was R130 295 per kilogram, but 16 percent up from the received price of R107 903 per kilogram in the March.
Total cash costs during the June quarter was R63 276 per kilogram, up four percent from the March quarter's R60 815 per kilogram.
In dollar terms, total cash costs declined one percent to $305/oz from $308/oz in the March quarter.
The group forecast average total cash cost for the June quarter of $299/oz, using various exchange rate assumptions.
Net debt declines
The company's net debt level reduced over the June quarter from $1.66-billion to $1.03-billion.
"I'm pleased with AngloGold Ashanti's solid operating performance and good financial results for the second quarter," CEO Bobby Godsell said in a statement.
AngloGold Ashanti's hedge book delta was 315 tons or 10.14 million oz at the end of June 2006, marking a reduction of 1.09 million oz, or ten percent, from the hedge delta 11.23 million oz at the end of March 2006.
As at Wednesday, the marked-to-market value of the group's hedge book was a negative R21.93-billion.
Safety record
On the safety front, AngloGold Ashanti reported a decline in lost time injury rates for the June quarter to 6.6 compared to 6.8 previously and a decline in fatal accidents to five in the June quarter from 11 previously, with fatality rates reducing from 0.28 to 0.12.
Three operations were lost-time accident free, namely Cripple Creek & Victor, Bibiani and Yatela, and a further seven operations recorded a single lost-time injury during the quarter, the group said.
During the June quarter, AngloGold Ashanti reported single fatalities at the Great Noligwa, Tau Lekoa, Mponeng mines and the TauTona saw two fatalities. All four mines are in South Africa.
Outside South Africa, AngloGold Ashanti has gold mining operations in Argentina, Australia, Brazil, Ghana, Guinea, Mali, Namibia, Tanzania and the US.
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