GOLD NEWS

AngloGold Q2 earnings down, output target unchanged

The gold miner has already flagged that it expected a roughly 40% earnings drop in the three months to the end of June because of a lower dollar gold price.

JOHANNESBURG (Reuters)  - 

World no. 3 gold producer AngloGold Ashanti reported a 41 percent fall in second quarter earnings on Monday, as expected, despite a surprising rise in output.

The South Africa-based miner with global operations also declared a dividend of about 12 U.S. cents a share, in line with a Reuters' poll of 5 analysts, and stuck to its 2012 production target of between 4.3 and 4.4 million ounces.

The company had already flagged that it expected a roughly 40 percent earnings drop in the three months to the end of June because of a lower dollar gold price and a one-off boost to its first quarter profits from a deferred tax credit.

Adjusted headline earnings came in at 65 U.S. cents a share compared to 111 U.S. cents in the previous quarter.

The company said second quarter gold production of "1.07 million ounces beats guidance on strong performances from continental Africa and the Americas."

The company said total cash costs were up slightly at $801 an ounce but was also better than the company had flagged because of the improved production and weaker local currencies. This benefits gold miners who earn dollars with a cost base in domestic currencies.

Cash costs in the next quarter are seen rising to between $835 and $865 an ounce, the company said.

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