Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
AngloGold Ashanti expects to meet its gold output target of up to 2.79 million ounces this year despite flooding at its Tropicana mine in Australia, the company said on Tuesday as it reported a headline net loss of $46 million for 2023.
The loss was mainly due to lower gold sales, corporate restructuring costs, higher environmental provisions as well as costs of job cuts, care and maintenance at Córrego do Sítio in Brazil, which was idled last August.
It compares with a restated headline profit of $489 million the year before. AngloGold Ashanti, which also has operations in Africa and the Americas, restated its financial statements for 2022, which the company said “contained an error related to the reported amount of the deferred tax asset with regard to the Obuasi mine” in Ghana.
The miner said while it anticipated gold production at its Tropicana mine to be impacted during the first half of 2024, “any decrease is expected to be largely recovered in the second half”.
“Consequently, the company does not believe that this event will have an impact on its gold production and cost guidance provided in February 2024, which guidance is therefore maintained,” AngloGold Ashanti said.
Tropicana, which is 70% owned by AngloGold Ashanti and contributed 310,000 ounces or 12% of the group’s total 2023 output, was impacted this month by heavy rains and flooding.
Mining operations have been restricted due to the flooding, while the processing plant is treating stockpiled ore at a reduced throughput rate, AngloGold Ashanti said in a statement.
(By Nelson Banya; Editing by Emelia Sithole-Matarise)
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