AngloGold Ashanti, a South African gold miner, has announced a decline in net profit for the first half of the year. Despite this, the company has maintained its full-year guidance and highlighted impairments in its Brazilian portfolio as the primary cause for the decrease in earnings.
- Net profit for the first half of the year amounted to $40 million, compared to $298 million in the same period last year.
- Basic earnings per share were $40 million, or 10 cents, down from $298 million and 71 cents.
- The company attributed this decline to a $141 million loss related to impairments in its Brazil portfolio.
- Basic earnings were forecasted to be between $25 million and $54 million.
- Headline earnings, which exclude exceptional and one-off items, amounted to $140 million, or 33 cents per share. This is a decrease from $300 million, or 71 cents per share, in the previous year.
- The company had previously estimated headline earnings to be between $125 million and $155 million.
- Gold production during the period rose to 1.24 million ounces, as expected, compared to 1.23 million ounces in the previous year. This increase can be attributed to improved production from various mines and higher grades recovered.
- Second-quarter output reached 652,000 ounces, while the first quarter saw 584,000 ounces produced.
- The board of directors has declared an interim dividend of 4 cents per share, a decrease from 29 cents per share in the previous year.
- For the year 2023, AngloGold Ashanti anticipates capital expenditure within the range of $960 million to $1.07 billion.
- Chief Executive Alberto Calderon is optimistic about the company’s prospects and expects strong operating improvements in the second half of the year.