AU - AngloGold Ashanti warns of significant drop in 2022 earnings

AngloGold Ashanti ( NYSE: AU ) -7% in Wednesday's trading after saying it achieved guidance for production, capital expenditure and all-in sustaining costs for FY 2022, but it expects to report significant declines in full-year earnings.

The miner expects to report FY 2022 production of 2.74M oz, up 11% from 2.47M oz in 2021, ending 2022 in the top half of its guidance range, with the Obuasi gold mine in Ghana expected to achieve its production guidance of 250K oz.

Total cash costs are expected to come in less than 1% above the yearly guidance range despite significant volatility in the macro environment.

AngloGold ( AU ) said it has "reasonable certainty" that FY 2022 headline earnings will be in the $530M-$560M range, 8%-13% below the previous year, and basic earnings will come in at $0.67-$0.75/share, down 49%-55% Y/Y.

The expected drop in basic earnings is due mostly to non-cash impairments recognized at its Brazilian operations, hitting basic earnings by $246M, or $0.59/share.

AngloGold Ashanti ( AU ) shares have lost 8.5% so far this year and nearly 13% during the past year .

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