South Africa-based mining company AngloGold Ashanti said it expects its annual earnings to fall by up to 42%, dragged down by lower gold sales, inflationary pressures, and pandemic-driven costs.
According to the gold miner, headline earnings per share (HEPS), the main measure of profitability in South Africa, will be between 137 U.S. cents and 153 U.S. cents in 2021, down from 238 U.S. cents a year earlier.
The company said it had a “challenging year” as its production was partially hit by the suspension of mining at Obuasi Mine following a fatal accident last May.
The nation’s largest miner reiterated its previous forecast of 2.427 million ounces (Moz), compared to 3.047Moz last year.
COVID-19 last year affected production by 47 kilo ounces, mostly affecting the company’s operations in Ghana, Brazil, and Argentina.