AngloGold Ashanti Ltd expects its first-quarter output to be 2.5% lower than its previous guidance partly owing to safety stoppages, it said on Thursday.
Output in the quarter to end March was seen at 1.1 million ounces compared with the previous guidance of 1.13 million ounces, a drop which would impact on per unit cash costs during the quarter, AngloGold said in a statement.
The group, which has 21 operations across four continents, also attributed the production downfall to a slower start-up in mines after the Christmas break and a plant breakdown at its Geita mine in Tanzania.
Geita has had a few difficult years with output below expectations.
AngloGold said all the issues at the affected mines had been resolved, adding all other mines either achieved or exceeded their targets set for the quarter.
AngloGold recorded strong performances from its Sunrise Dam in Australia, Siguiri mine in Guinea and Ghana's Obuasi mine, where the company said it was achieving its turnaround targets.
"We've successfully addressed a number of challenges in the first quarter, while continuing our drive to improve safety," chief executive officer Mark Cutifani said.
"I'm confident that we remain well placed to meet our objectives for the year."
The guidance for the full year of production between 4.9 million to 5.0 million ounces at a total cash cost of $435 to $450 an ounce was based on a rand-dollar conversion of R9.75 and a fuel price of $50 per barrel remained unchanged, it said.
In 2008, AngloGold produced 4.98 million ounces of gold from its operations, an estimated 7% of global production.
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