Bloomberg News

AngloGold May Lift Output 68% by 2020 Excluding Acquisitions

September 26, 2011

(Updates with closing share price in last paragraph.)

Sept. 26 (Bloomberg) -- AngloGold Ashanti Ltd., the third- largest producer of the metal, may increase output 68 percent by 2020 excluding any acquisitions as it seeks to reverse declines.

The company may raise production to 7.6 million ounces, it said today in a presentation on its website, adding the figure was “illustrative.” AngloGold produced 4.52 million ounces last year and is targeting 5.5 million ounces in 2014.

AngloGold and rivals are seeking to gain from record gold prices. The Johannesburg-based company, whose production fell for the past four straight years, plans to dig mines to record depths in South Africa and is considering opening its first mines in Colombia and the Democratic Republic of Congo.

AngloGold is “poised for a return to growth with planned and permitted projects,” the company said in the presentation.

Output slid from 5.48 million ounces in 2007 as it grappled with problems including flooding and safety stoppages, mainly in South Africa. The company aims to boost overseas projects as a proportion of total assets.

Approval for DRC’s Mongbwalu and Kibali developments, the Brazilian Nova Lima Sul project and Sunrise Dam underground mine in Australia are “imminent,” it said, without elaborating. A plan to deepen South Africa’s Mponeng mine is nearing approval.

New Mining Methods

AngloGold plans a 24 percent gain in annual output by 2014, compared with larger rival Barrick Gold Corp.’s 12 percent and Newmont Mining Corp.’s 14 percent, the presentation shows.

AngloGold sees production this year of 4.45 million ounces.

The company will try out new mining methods in South Africa within two years to unlock an estimated 70 million ounces of gold buried more than 3.1 miles (5 kilometers) below the surface, Chief Executive Officer Mark Cutifani said on Aug. 5.

Gold has gained for 10 years and reached a record $1,921.15 an ounce on Sept. 6 in London. Immediate delivery gold was 3.2 percent lower at $1,603.22 today.

AngloGold declined 1.6 percent to 349.50 rand by the 5 p.m. close in Johannesburg, paring its gain to 6.2 percent this year.

--Editor: John Viljoen

To contact the reporter on this story: Carli Lourens at clourens@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus