By Anthony O. Goriainoff
AngloGold Ashanti said that first-half net profit fell and backed its guidance for the year as it booked impairments in its Brazilian portfolio.
The South African gold miner said Friday that net profit was $40 million, compared with $298 million the year before.
Basic earnings were $40 million, or 10 cents a share, compared with $298 million and 71 cents. The company said this was due to a $141 million loss mainly related to impairments in its Brazil portfolio.
Basic earnings were expected to be between $25 million and $54 million.
Headline earnings--one of the company's preferred metrics, which strips out exceptional and other one-off items--were $140 million, or 33 cents a share, compared with $300 million, or 71 cents.
The company said earlier this week that it expected headline earnings of between $125 million and $155 million.
The company said gold production in the period rose to 1.24 million ounces, as expected, from 1.23 million ounces a year prior due to increased production from several mines and higher grades recovered. Second-quarter output was 652,000 ounces versus 584,000 for the first quarter.
The board declared an interim dividend of 4 cents a share, down from 29 cents a year earlier.
For 2023 the company expects capital expenditure in the $960 million to $1.07 billion range.
"We're expecting strong operating improvements in the second half," Chief Executive Alberto Calderon said.
Write to Anthony O. Goriainoff at email@example.com
(END) Dow Jones Newswires