SOURCE: AngloGold Ashanti

May 05, 2006 02:30 ET

AngloGold Ashanti First Quarter Results

JOHANNESBURG, SOUTH AFRICA -- (MARKET WIRE) -- May 5, 2006 -- AngloGold Ashanti (NYSE: AU) reported a significantly improved financial performance for the first quarter of 2006, with headline earnings before unrealised non-hedge derivatives and fair value loss on the convertible bond up 110% to $86m, primarily as a result of strong participation in the gold price rally. Price received for the quarter was $545/oz, 2% under the spot price or $69/oz higher than in the fourth quarter of 2005.

Production was 10% lower at 1.34Moz, due to lower grades and fewer production shifts in South Africa, both of which were anticipated. Significantly lower production from the Geita operation in Tanzania, as a result of a countrywide drought and subsequent heavy rains, also negatively affected production. As a result of this production decrease and strong local operating currencies, total cash costs for the group increased 11% to $308/oz, but were some 4% below the company's mid-quarter guidance.

CEO Bobby Godsell said, "I'm pleased with our strong financial performance during the quarter and with our continuing cost management in the face of strong operating currencies."

The full quarterly report can be found on the AngloGold Ashanti website:

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