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Business News of Wednesday, 15 February 2006

Source: AngloGold

Anglogold Ashanti Results For The Fourth Quarter


AngloGold Ashanti reported steady fourth quarter production of 1.494 million ounces of gold, with total cash costs down 2% to $278/oz. The price received for the quarter rose 10% to $476/oz. Adjusted headline earnings rose 86% to $41m.

For the year ended 31 December 2005, the company reported a 6% increase in production to 6.166 million ounces of gold, with total cash costs up 6% to $281/oz, mainly due to stronger local operating currencies in Argentina, Australia, Brazil and South Africa.

A dividend of 62 South African cents (10 US cents) per share has been declared for the six months ended 31 December 2005. This represents a similar payout level of dividends to adjusted headline earnings, as per the mid-year declaration, resulting in a total dividend for the year of 232 South African cents (35 US cents) per share.

In providing guidance for 2006, the company is expecting to produce between 5.8 and 6.1 million ounces of gold, with cash costs ranging from $285/oz to $293/oz, based on the following exchange rate assumptions: $/R6.50, A$0.76, BRL/$2.40 and Argentinean peso/$2.96. Total group capital expenditure for the year is forecast between $786m and $818m.

The company also noted that, based on current planning and due to a range of major capital projects in South Africa and Brazil in particular, gold production in 2007 is expected to increase by between 6% and 8%.

In respect of management changes, the company announced today that Kelvin Williams, Executive Director of Marketing, will be retiring in May 2006. Commenting on his intended retirement, CEO Bobby Godsell said ?Kelvin has had a long and distinguished career with AngloGold Ashanti and, prior to this, with the Anglo American group of companies. He has managed our hedge book through bear and bull markets in gold, with the focus always on maximizing value to the business. He has also led our gold marketing strategy in refining, gold jewellery manufacturing and promotion across the globe and with great effect.?

AngloGold Ashanti has appointed its Treasurer, Mark Lynam, to succeed Kelvin Williams in the management of the hedge book. Mark has worked alongside Kelvin for the past fourteen years.

In respect of the gold marketing portfolio, the company has appointed Thero Setiloane to succeed Kelvin Williams. Thero will join the Executive Committee. He is a current chairman of the board of the Rand Refinery and, prior to joining AngloGold Ashanti, was an Executive Director with Real Africa Holdings.



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