Anglogold posts solid results

Vancouver — Despite lower production, the world’s largest gold producer saw its earnings jump 19% in the second quarter.

Anglogold (AU-N) posted a profit of US$63 million (or 62 per share) in the three months ended June 30. Driving the earnings growth was a 4% drop in the total cash cost of producing an ounce of the yellow metal. The major cranked out 1.7 million oz. at a total cash cost of US$185 per oz. In the first six months of the year, the company produced 3.5 million oz. at a cash cost of US$189 per oz.

African operations contributed US$22 million in operating profits by producing 211,000 attributable ounces at a total cash cost of US$121 per oz.

For the quarter, production from outside South Africa grew to 33%, operating profits to 41%, and cash earnings to 57%.

Averting a major strike, the company recently signed a wage agreement with the National Union of Mineworkers in South Africa. Chief Executive Officer Robert (Bobby) Godsell says the deal locks in a 2-year contract.