AngloGold reports "improved" 4th quarter performance

Accra, Feb. 13, GNA - AngloGold Ashanti on Tuesday reported that its fourth quarter for 2006 showed 93improved operating performance" with production being four per cent higher at nearly 1.5 million ounces and slightly better cash costs of 309 dollars per ounce.

A statement issued in Accra said the adjusted headline earnings for the quarter were 46 million dollars, after some 100 million dollars in accounting adjustments.

It said the gold price received by the company was 578 dollars per ounce, six per cent below the average spot price and within the company's targeted range, as AngloGold Ashanti continued to deliver into its hedge book.

It said for the year, gold production decreased by nine per cent to 5.6 million ounces and cash costs were 10 per cent higher, 93a solid performance in the light of rising prices of commodity inputs". The statement said adjusted headline earnings for the year doubled to 413 million dollars, the company's highest level of annual earnings ever recorded.

It said the company's ore reserves increased by 10 million ounces to around 67 million ounces during the year.

The company said a dividend of 240 South African cents per share (33 US cents) was declared for the six months ended 31 December 2006, resulting in a total dividend of 450 South African cents per share (62 US cents), almost double the total dividend paid in 2005.

Mr Boddy Godsell, AngloGold Ashanti's Chief Executive Officer said: 93In sum, 2006 was a year of production disappointments, competitive cost control and good reserve generation. In a year in which spot gold price rose by 36 per cent, our adjusted headline earnings have increased by 105 per cent clearly demonstrating the company's strong leverage to a rising gold spot price."