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.
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