AngloGold posts loss and signals job cuts
The South African miner posted a $2.2bn quarterly loss
Gold prices fell in the second quarter of the year. For some miners the fall is close to or even below their “all-in” cost of producing gold.
AngloGold Ashanti unveiled job losses and suspended a dividend payment as the world’s largest gold miners sought to adjust to the falling price of the metal.
The South African miner posted a $2.2 billion quarterly loss after a $2.4 billion post-tax impairment of the value of its assets in response to lower gold prices. Randgold Resources, a partner of AngloGold in developing one of Africa’s largest mines that is shortly to go into production, avoided writedowns but saw income for the quarter fall over 60 per cent.
Gold price fell in the second quarter of the year. For some miners the fall is close to or even below their “all-in” cost of producing gold, forcing many to respond by cutting costs and paring back spending on building mines or exploring for new assets. - (Copyright The Financial Times Limited 2013)