AngloGold Ashanti Ltd. (ANG.JO), the world's No. 3 gold producer, reported a first-half loss on Monday as the miner restructures some of its loss-making South African units.
AngloGold reported a loss of $176 million in the six months to June 30, from a profit of $52 million during the same period in 2016, in line with the company's previously announced guidance. Earnings were hit by an $86 million post-tax impairment related to certain South African mines, as well as $47 million post-tax set aside for potential staff layoff costs there as well as $46 million post-tax for the estimated cost of settling a silicosis class action lawsuit brought against a group of major South African miners.
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The company said its headline loss, which strips out certain exceptional and one-off items, came in at 22 cents a share, from a profit of 23 cents a share a year earlier. AngloGold added that higher operating costs, due to stronger local currencies in South Africa and Brazil, as well as lower income from joint ventures also hit its bottom line. Net debt has risen by 12% since Dec. 31 to $2.15 billion at June 30.
The South Africa-based mining company's shares are down 12% year-to-date and 48% over the last 12 months on the Johannesburg Stock Exchange.
Gold production rose 0.2% from the same six months in 2016, to 1,748,000 ounces in the January to June period. The company received an average gold price of $1,236 an ounce in the first half of 2017, up 1.1% from $1,222 from the first half of 2016, though all-in sustaining costs rose 18% to $1,071 an ounce over the same period.
Revenue for the first six months of the year rose 4.3% to $2.13 billion.
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(END) Dow Jones Newswires
August 21, 2017 02:10 ET (06:10 GMT)