AngloGold Ashanti Ltd (NYSE:AU) swung to a profit in its first half as costs fell and output improved, expecting to see full-year production at the higher end of its forecast range.
The gold mining company reported earnings of US$0.21 per share, or US$85mln, compared with a net loss of US$0.23 per share, or a loss of US$93mln in the previous year’s first half.
All-in sustaining costs fell by 5% to US$1,020 per ounce compared with US$1,071 per ounce in the first half of 2017.
The company completed the sale of its Vaal River mines at the end of February, using the proceeds to reduce its debt and strengthen its balance sheet.
Net debt fell by 17% year-over-year to US$1.78bn compared with US$2.15bn this time last year.
READ: AngloGold Ashanti shares dip pre-market after company says CEO to depart
Production increased by 4% to 1.372 million ounces from 1.313 million ounces in the previous first half.
AngloGold will welcome a new leader in two weeks as Barrick Gold Corp’s (NYSE:ABX) Kelvin Dushnisky replaces current CEO Srinivasan Venkatakrishnan.
“The business is in good shape - production is strong, costs are improving, and our pipeline is well stocked with options,” said Venkatakrishnan in the company’s press release.
The South African company expects to reach the high-end of its full-year production guidance, a range between 3.3 million and 3.5 million ounces of gold.
AngloGold said it will take steps to improve its safety performance after reporting three fatalities in the first half of the year. The company reported 5.6 injuries per million hours in the first half, down 31% from the first half of last year.
Shares of the mining company were up more than 2.5% to US$7.44 in Monday pre-market trading.