Bloomberg News

AngloGold Says Gold Can ‘Easily’ Rise to $2,200 an Ounce

October 25, 2011

(Updates with comments from CEO in second paragraph.)

Oct. 25 (Bloomberg) -- Gold could “easily” rise to $2,200 an ounce in the next two years as costs increase and global financial concerns persist, said the chief executive officer of AngloGold Ashanti Ltd., the third-largest producer of the metal.

“It costs almost $1,200 to produce an ounce of gold,” Mark Cutifani said at a conference in Perth today. “The gold price probably reflects the fundamentals of the industry.”

AngloGold is boosting capacity to benefit from record prices for the precious metal, which has risen for 10 straight years. Gold has climbed about 16 percent in a year amid concern economic growth in the U.S. and Europe will slow. Futures in New York reached a record $1,923.70 an ounce on Sept. 6.

The gold producer will invest between $1.6 billion and $2.2 billion a year in its projects worldwide in 2012 and 2013, Cutifani said last month. The company expects to produce 4.45 million ounces this year, it said on Aug. 4.

AngloGold’s American depositary receipts rose 4.1 percent yesterday to $42.75 in New York Stock Exchange composite trading. Gold was at $1,657.90 an ounce at 2:27 p.m. Sydney time.

--Editors: Ryan Woo, Rebecca Keenan.

To contact the reporters on this story: Jason Scott in Perth at jscott14@bloomberg.net; Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net.


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