AU - AngloGold expects lower 2021 earnings as volumes drop costs rise

AngloGold Ashanti (AU +3.9%) said it expects to report a decline of as much as 42% to headline earnings for 2021, weighed by lower gold sales and inflationary pressures. The miner anticipates headline earnings of $572M-$642M and headline EPS of $1.39-$1.54, a decrease of 36%-42% from the prior-year period, citing lower gold sales and higher operating costs stemming from increasing sale costs due to lower grades, which were exacerbated by inflationary pressures as well as the continued effect of COVID-19 on costs. AngloGold said it expects FY 2021 total production of 2.47M oz., compared with 3.05M oz. for 2020, mainly due to the sale of its South African operations, significant reinvestments across key assets, lower realized grades at some operations, the temporary suspension of underground mining activities at Obuasi, as well as the continued impact of the pandemic. AngloGold has "had a rough year relative to peers [but] has a

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AngloGold expects lower 2021 earnings as volumes drop, costs rise