<<Print>>

AngloGold Ashanti posted adjusted headline earnings (excluding cost of accelerated hedge buy-back) of $203 million in the first quarter of the year, a statement copied to Ghana News Agency on Monday said. It said the $203 million-earnings or 53 cent per share, compared with $61 million, or 17 cents for the corresponding quarter in 2010, was due to improved year-on-year performance from the South African mines and full impact of higher bullion prices. �The first three months of the year traditionally have the lowest production given that South African mines restart operations after the Christmas break,� the statement noted. The company also boosted cash flow from its operations after eliminating its hedge book last year to reap the full benefit of record gold prices. It said cash flow generated from the company�s operating activities during the first quarter was $513 million. Net debt (excluding mandatory convertible bonds) improved by another 15 per cent to $1.1 billion, underscoring the improvement in AngloGold Ashanti�s cash generation, even after the company funded its capital expenditure requirements. �The business is generating strong, steady cash flow now that we�re capturing this higher gold price,� Chief Executive Officer Mark Cutifani said in the statement. �We�re now focused on driving operational improvements through the business and advancing our growth projects,� he added. The statement further said: �Production was 1.039Moz at a total cash cost of $706/oz in the three months to March 31, 2011, compared with 1.079Moz at $619/oz the for the corresponding quarter last year, and guidance for the first quarter of 1.04Moz at $675/oz to $700/oz,� it added.