AngloGold Ashanti shares fell more than 8% on Tuesday after the miner said its half-year profit would fall by as much as 58%, mainly due to higher costs and mandatory environmental provisions in Brazil.
The miner’s shares fell to their lowest level since March 16.
AngloGold expects its headline earnings per share (HEPS) – the main profit measure for South African firms – to be between US$0.30 and US$0.37 in the six months to June 30, compared to US$0.71 a year ago.
AngloGold said earnings were hit by higher environmental provisions of US$38 million net of tax following the implementation of new legislation in Brazil relating to the management of mineral waste storage facilities.
Inflation had also driven up operating costs by US$111 million, the miner said. Mineral exploration and evaluation costs had also increased.
Gold production was marginally higher at 1.236 million ounces during the half-year, compared to 1.233 million ounces during the same period last year.
In May, AngloGold, whose forerunner was founded by industrialist Ernest Oppenheimer a century ago, announced plans to shift its primary listing from Johannesburg to New York.
The company, which completed the sale of its South African mines in 2020, will also shift its corporate headquarters to London.
AngloGold will publish its half-year results on Aug. 4.
