AngloGold reinstates 2020 guidance

ANGLOGOLD Ashanti has reinstated its production guidance for 2020 and hinted at a higher dividend as worries around COVID-19 disruptions start to fade.
AngloGold reinstates 2020 guidance AngloGold reinstates 2020 guidance AngloGold reinstates 2020 guidance AngloGold reinstates 2020 guidance AngloGold reinstates 2020 guidance

AngloGold interim CEO Christine Ramon

Staff reporter

AngloGold guided for production of 2.80-2.86 million ounces - excluding its South African assets - with the bottom end of the range slightly higher than its previous target of 2.65-2.87Moz.

The figure excluded the South African assets as it anticipates the completion of a previously announced sale to Harmony Gold later this month after all conditions were met last week.

Expected all-in sustaining costs of US$1050-1100/oz were slightly higher than the pre-pandemic forecast of $1030-1090/oz.

Capital expenditure sits slightly below the previous estimate at $855-920 million.

The company said Cerro Vanguardia in Argentina, Serra Grande in Brazil and the South African operations had been restored to full operational capacity after pandemic-related suspensions.

The impact of the pandemic was 85,000oz, or about 3% of production, and $53/oz, or about 5% of AISC.

AngloGold's interim CEO Christine Ramon told attendees at the 2020 virtual Gold Forum Americas that the company would be reviewing its interim policy at year-end - a statement BMO analyst Raj Ray said indicated "potential for upside", given the company's steady balance sheet and strong gold price environment.

AngloGold's Australian CHESS depositary interests closed 5% lower at A$7.44 yesterday, valuing the company at $14.2 billion.