AngloGold says gold market is entering “a perfect storm”

AngloGold Ashanti reported record quarterly profits on Thursday of $342 million, up a whopping 68%, boosted by the precious metal’s longest winning streak in almost a century. The world’s third-largest gold miner cut production targets by over 4% and said it expected its cash costs to rise as much as $80/oz however.

The Johannesburg-based company’s CEO said the gold market is entering “a perfect storm” and that gold could “easily” break through $1,700 an ounce. December gold reversed its record setting pace by midday on Thursday to trade at $1,661.70 after touching $1,684.90 in early trade.

Bloomberg quotes CEO Mark Cutifani as saying the company is cutting its annual production target 4.3% to about 4.45 million ounces from 4.65 million ounces and at the same time upping its cost estimates to $740/oz from $660/oz–$685/oz before.

Mining Weekly reports the company will be testing new technology from General Electric, 3M and Schlumberger for automated continuous mining below 5 000m to unlock a further 70 million of ounces of South African gold.