Six-fold profit increase for AngloGold

AngloGold Ashanti has recovered from major strike action in South Africa to post a six-fold increase in quarterly profit.

The company reported headline earnings, which exclude one-time events such as asset sales, of $113 million, up from $19m in the previous quarter.

 

Gold production also rose to 899,000 ounces, up from 859,000 and the company forecast second-quarter production to hit between 900,000 to 950,000 ounces.

 

“The stronger performance relative to the previous quarter reflects the recovery from the strike action at the South Africa operations which hampered production towards the end of last year,” the company said.

 

While the latest profit represents a turnaround from the tough conditions the company faced at the end of 2012, the earnings are significantly lower than the $447m profit posted in the first quarter last year.

 

The company's new CEO Srinivasan Venkatakrishnan said productivity and costs would be the focus for the company moving forward, and improvements in those areas were crucial given the recent weakness in the gold price.

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