AngloGold Ashanti earnings up

The world's third biggest gold producer, AngloGold Ashanti, has posted a jump in earnings. It says that it plans to raise around R12 billion through a rights issue offer of new stock.

The company posted 37 US cents in first-quarter adjusted headline earnings per share versus six US cents, reflecting accounting adjustments and a higher gold price, even as output fell on a power crunch in South Africa. Production for the quarter ending March reached 1.2 million ounces, 9% higher than a forecast issued in February.

South Africa's mines were hit by a power blackout as the electricity grid came to a near collapse, forcing their operations to cease for five days in January and thereafter resuming at below capacity. AngloGold Ashanti says subject to the power stability and availability at 96.5% level, 2008 output is expected to rise to a range of 4.9 million ounces to 5.1 million ounces.