Anglogold Ashanti Expects Decline in First-Half Earnings

Anglogold Ashanti, a South African gold miner, announced on Tuesday that it anticipates a decrease in both headline earnings and headline earnings per share for the first half of 2023. The company projects first-half headline earnings in the range of $125 million to $155 million, with headline earnings per share between 30 cents and 37 cents. This represents a decline of approximately 48% to 58% compared to the same period last year.

The anticipated drop in earnings is primarily attributed to a higher non-cash environmental provision of $38 million (net of tax) due to recent legislation in Brazil. Additionally, the continued impact of inflation has resulted in operating costs being hit by approximately $111 million.

Anglogold Ashanti expects basic earnings to range from $25 million to $54 million, translating to basic earnings per share between 6 cents and 13 cents. In contrast, the previous year recorded figures of $298 million and 71 cents.

However, there is a silver lining as gold production for the period is expected to increase slightly, rising from 1.23 million ounces to 1.24 million ounces. This can be attributed to enhanced production from multiple mines and the recovery of higher-grade ores.

Overall, Anglogold Ashanti remains resilient despite the projected decline in earnings, showcasing its commitment to navigating challenges within the industry.