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05/10/12 -- AngloGoldAshanti (NYSE: AU) Growth projects worth $1.9bn approved -- CC&V, Kibali,Mongbwalu. Adjusted headline earnings double year-on-year to $429m (111 UScents a share). Profit attributable to equity shareholders more than doublesyear-on-year to $563m. EBITDA up 39% year-on-year to $800m compared to 22% average rise ingold price. Q1 Dividend declared of 100 SA cents per share (~13 US cents pershare). Total cash costs of $794/oz, better than guidance. Production down 6% to 981,000oz due to safety stoppages in SouthAfrica. All other operating regions met plans. La Colosa resource increases by a further 48%, or 7.9Moz, to24.15Moz. Significant new resource potential emerging in Colombia, Guinea andDjibouti. Agreed to buy Mine Waste Solutions for $335m in cash. AngloGold Ashanti (NYSE: AU) posted first-quarter adjusted headlineearnings of $429m, more than double the same period a year earlier,and approved the development of three growth projects. The company's board gave the go-ahead to invest $1.9bn over thecoming five years to expand the Cripple Creek & Victor mine inthe US and develop the Mongbwalu and Kibali projects in theDemocratic Republic of Congo. The projects will be fundedinternally and are expected to contribute additional annualproduction of more than 500,000 ounces to AngloGold. AngloGold plans to increase production to between 5.4 million and5.6 million ounces by about 2014 from a combination of new projectsin Africa, Australia and South America and through the expansion ofsome existing operations. The growth is expected to be funded frominternal sources. The company, which eliminated its hedge book in2010, has seen improved earnings and cash flow in recent years fromfull exposure to a rising bullion price and improvements at keyassets. "The first quarter has shown that we continue to deliver theearnings and cash flow we need to drive our growth plans andfurther diversify our portfolio,' Chief Executive Officer MarkCutifani said. "We're now able to invest in our portfolio todeliver growth from an attractive suite of projects which are eachof manageable size and carry relatively low technical executionrisk." AngloGold expects to invest $982m for its 45% share of thedevelopment of the Kibali mine, a joint venture with Sokimo, theDRC's state-owned gold mining company (10%) and with RandgoldResources, the project manager and operator, which also has a 45%stake. The mine is expected to pour its first gold at the end ofnext year and to produce at an annual rate of about 600,000 ouncesa year for the first decade of its life. At Mongbwalu, a jointventure in the DRC in which AngloGold has an 86.22% stake,AngloGold has made an initial investment of $345m which willdeliver average annual production of about 130,000 ounces in eachof its first three years. The company plans to quickly expand theoperation as it adds more gold resources in the area once firstgold is produced, which is expected to occur toward the end of nextyear. At Cripple Creek, in the US state of Colorado, the expansion at acapital cost of approximately $557m, to be invested over the nextfive years, is expected to help boost the mine's production to morethan 400,000 ounces. In tandem with a further mine-life extensionproject targeted for the end of the decade, AngloGold expects themine to produce at that level until at least 2025, after whichproduction is anticipated to remain around at least 350,000 ouncesfor approximately another 10 years. There is also significantunderground potential, which will be accessed for exploration aspart of the current development project. The three new projectsannounced today complement the Tropicana project in Australia,which is expected to start production at the end of next year, aswell as the Córrego do Sítio mine in Brazil, which iscurrently commissioning. First Quarter Adjusted headline earnings in the three months to March 31 morethan doubled to $429m, or 111 US cents a share, compared with$203m, or 53 US cents the previous year. Production of 981,000ounces at a total cash cost of $794/oz compared with 1,039Moz at$706/oz in the same quarter of last year. The operating result was negatively impacted with Section 54s andsafety related stoppages at the group's South African operations,while the other three operating regions delivered productionaccording to plan. Tragically, four employee fatalities were recorded at separateincidents at the Moab Khotsong, Mponeng and Savuka mines in SouthAfrica and at Cerro Vanguardia, in Argentina. The company remainscommitted to eliminating fatalities at its mines through thecontinued implementation of its Project ONE operating model andcontinual improvement of safety protocols. Success to date isevident in its all accident frequency rate, which at 8.17 permillion hours worked, is the lowest in the company's history. Outlook Full year(1) 2012 production remains 4.3Moz-4.4Moz at a total cashcost of $780/oz-$805/oz. For the second quarter(2), production isexpected to be around 1.04Moz at a total cash cost of $840/oz to$845/oz. (1) Assuming an exchange rate of R7.40/$ and an oil price of$110/barrel for the year. (2) Assuming an exchange rate of R7.70/$ and an oil price of$125/barrel. AngloGold Ashanti may not be able to reach the goals or meet theexpectations set out in this report. Refer to the disclaimer inthis communication or to the "Risk Factors" section in the current2011 Annual Report on Form 20-F. About AngloGold Ashanti AngloGold Ashanti is a global gold mining company and the world'sthird largest gold producer. Headquartered in Johannesburg, SouthAfrica, AngloGold Ashanti has 20 operations on four continents andone of the gold industry's most successful exploration teams whichwork across both the established and new gold producing regions ofthe world. This includes land positions in Colombia, Egypt, Guinea,Australia and the Solomon Islands, among others. AngloGold Ashantiemployed 61,242 people, including contractors, in 2011 and produced4.33Moz of gold, generating $6.6bn in gold income. Capitalexpenditure in 2011 amounted to $1.5bn. As at 31 December 2011,AngloGold Ashanti's Ore Reserve totalled 75.6Moz. The primary listing of the company's ordinary shares is on the JSELimited (JSE). Its ordinary shares are also listed on stockexchanges in London and Ghana, as well as being quoted in New Yorkin the form of American Depositary Shares (ADSs), in Australia, inthe form of CHESS Depositary Interests (CDIs) and in Ghana, in theform of Ghanaian Depositary Shares (GhDSs). Disclaimer Contacts Alan Fine Media +27 (0) 11 637- 6383 /+27 (0) 83 250 0757 Email Contact Mike Bedford Investors +27 (0) 11 637 6273/+27 (0) 82 3748820 Email Contact Stewart Bailey Investors +1 212 836 4303/+1 646 338 4337 Email Contact. I am an expert from paperpackagingboxes.com, while we provides the quality product, such as Wooden Storage Boxes , China Paper Suitcases, Packaging Jewellery Boxes,and more.
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