South Africa-headquartered miner AngloGold Ashanti said on Tuesday it expects its annual earnings to slump by up to 42%, dented by lower gold sales, increased inflationary pressures and pandemic-fuelled impact on costs.
The gold miner said it expects headline earnings per share (Heps), the main profit measure in South Africa, to come in at between 137 US cents and 153 US cents for the year ended December 31, 2021, compared with an Heps of 238 US cents reported a year earlier.
AngloGold said it had a “challenging 2021” as its production was partially hit by voluntary suspension of mining activities in Obuasi Mine after a fatal accident last May.
South Africa’s top miner reiterated its previous annual output forecast of 2.427 million ounces (Moz), while it produced 3.047Moz in the previous year.
The impact on production last year due to the Covid-19 crisis was estimated at 47 kilo ounces, mainly affecting the company’s operations in Ghana, Brazil and Argentina.