Bloomberg News

AngloGold Gains Most in Seven Weeks as Output Beats Target

July 23, 2012

AngloGold Ashanti Ltd. (ANG) climbed the most in more than seven weeks in Johannesburg trading after the third-largest gold producer said output was higher than expected and it arranged a $1 billion credit facility.

Second-quarter production rose 9 percent to 1.073 million ounces from the previous three months and compared with its target of 1.04 million ounces, the Johannesburg-based company said in a statement today. Earnings excluding one-time items may drop to $240 million to $255 million in the quarter through June from $429 million in the quarter through March, it said.

Gold producers in South Africa are trying to expand output to mitigate profit erosion caused by above-inflation increases in some costs including electricity and labor. AngloGold mines about a third of its metal in the country.

The stock advanced 3.2 percent, the most since May 31, to 265.50 rand by the 5 p.m. close in Johannesburg.

The five-year revolving facility replaces a four-year option maturing April 2014, improving the company’s debt profile, AngloGold said in a separate statement. Bank of Tokyo- Mitsubishi UFJ and Barclays Plc were the coordinators, it said.

To contact the reporter on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net

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


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