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Wednesday, July 30, 2008

AngloGold to Post Loss on Quarter Ending June 30


AngloGold Ashanti Ltd., the largest gold producer in Africa, will probably post a loss of $3.43 (25.46 rand) for the quarter ending June 30, according to four analysts surveyed. Last quarter they posted 2.88 rand in earnings. They'll release their earnings on July 31.

In the second quarter the company suffered a $1.1 billion before tax loss after forward sales were cut by 39 percent in the first half. AngloGold has the largest hedge book (forward sales) of any gold producer in South Africa. If gold gains in price, the hedge increases along with losses.

Major rivals Gold Fields LTD and Harmony Gold Mining Co. are expected to post a profit for the quarter.

South African utility problems still continue to allow the mines to run at 90 percent of regular consumption.

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