Anglogold warns on Q2, citing currencies, grades (UK:AGD, AU) By Emily Church
Anglogold (UK:AGD) (AU) said Wednesday that operating profit in the first quarter declined 6 percent to $146 million "largely due to anticipated reduced grades and to stronger currencies, other than US$, in operating regions." It said production down 9 percent in the quarter to 1.4Moz with lower grades and announced a further 9 percent reduction to the hedge book. Looking ahead, it warned on the currencies impact on the current quarter, saying "we anticipate that the currencies in which our costs are predominantly denominated, particularly the South African rand will maintain their strength in relation to the US dollar for the remainder of the year and have revised our planning assumptions accordingly. We expect AngloGold's earnings for the June quarter to remain under pressure as a result of the exchange rate together with lower grades and mining volume. We do, however, anticipate a gradual recovery by the fourth quarter."
Anglogold (UK:AGD) (AU) said Wednesday that operating profit in the first quarter declined 6 percent to $146 million "largely due to anticipated reduced grades and to stronger currencies, other than US$, in operating regions." It said production down 9 percent in the quarter to 1.4Moz with lower grades and announced a further 9 percent reduction to the hedge book. Looking ahead, it warned on the currencies impact on the current quarter, saying "we anticipate that the currencies in which our costs are predominantly denominated, particularly the South African rand will maintain their strength in relation to the US dollar for the remainder of the year and have revised our planning assumptions accordingly. We expect AngloGold's earnings for the June quarter to remain under pressure as a result of the exchange rate together with lower grades and mining volume. We do, however, anticipate a gradual recovery by the fourth quarter."
