AU - AngloGold sinks after warning on big H1 earnings drop

2023-08-01 10:25:07 ET

Anglogold Ashanti ( NYSE: AU ) -9.4% in Tuesday's trading after guiding for sharp declines in headline earnings and headline earnings per share in this year's H1.

The South African miner said it expects to report H1 headline earnings of $125M-$155M and headline EPS of $0.30-$0.37, compared to headline earnings of $300M and headline EPS of $0.71 in the year-earlier quarter.

Q2 basic earnings are seen at $25M-$54M, resulting in basic earnings of $0.06-$0.13, compared to $298M and $0.71 a year ago, respectively.

AngloGold ( AU ) said results were hurt by higher non-cash environmental provisions of $38M net of tax, or $0.09/share, for legacy tailings storage facilities following implementation of new legislation in Brazil relating to emergency response and safety management for TSFs, the effect of continued industry-wide inflation which raised operating costs by $111M, or $0.26/share, as well as increased investment in exploration and evaluation costs.

The company also said H1 gold production will be marginally higher Y/Y to 1.24M oz, due to higher output from several mines and higher grades recovered.

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