JOHANNESBURG May 8 Africa's biggest gold miner
AngloGold Ashanti reported a 16 percent drop in
quarterly core profit on Monday hit by a weak showing at its
South African operations.
AngloGold said adjusted earnings before interest, tax,
depreciation and amortization, or core profit, came at $314
million in the quarter to end-March and compared with $378
million the same year-ago period.
"South Africa had a difficult production quarter, as an
added focus on a safe start-up contributed to an unusually slow
ramp-up after the year-end break," AngloGold said in a
AngloGold is in talks with unions about cutting about 800
jobs in South Africa, whose vast resources are accompanied by
the risk of volatile labour relations, rising costs, regulatory
disruptions and dizzying shaft depths.
"We are reviewing our South African operations to restore
their margin and ensure they recover from a difficult start to
the year," said chief executive Srinivasan Venkatakrishnan
without specifying details.
The review come about two years after AngloGold, which
operates in eight other countries that include Brazil and Ghana,
shelved plans to separate its local mines by spinning off its
international assets into a new London-listed entity that it had
hoped would have attracted a higher investor rating.
(Reporting by Tiisetso Motsoeneng; Editing by Miral Fahmy)