News Column

AngloGold Warns On Loan Payment, Costs

July 25, 2014

Tom McIvor

LONDON (Alliance News) - Gold mining company AngloGold Ashanti Ltd Friday confirmed it is participating in a loan facility to Rand Refinery Ltd by a group of its shareholders, after Rand struggled to implement a new planning system at its refinery operations.

The company, which owns a 42.41% stake in Rand Refinery, said it expects to make a provision in its accounts for USD51 million related to the loan facility, which will impact its second quarter earnings.

In addition, AngloGold Ashanti noted that costs incurred in the previously announced closure of its Yatela mine in Mali, and ongoing restructuring at its Obuasi mine in Ghana, will also impact earnings for the second quarter.

The company said it has taken steps in the last 18 months to reduce costs to adapt to declines in the gold price during 2013 and the closure and restructuring process is a key part of that strategy.

AngloGold Ashanti shares were down 12.5% to 875.50 pence on Friday.

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Source: Alliance News

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