CEO Andrew Mackenzie announced the firm would cut capital and exploration expenditure to $9 billion in the 2016 financial year from $12.6 billion in 2015.
The miner, which is the world’s No.4 bullion producer, said unreasonable wage demands and escalating power costs in South Africa will likely push the country’s industry down the slippery slope.
The El Gallo mine produced 15,243 ounces of gold in the first quarter ended March 31, prior to an armed robbery of concentrate containing 6,350 ounces last month.