AngloGold posts record profit

AngloGold Ashanti will increase its final dividend after fourth-quarter adjusted headline earnings rose to a record US228 million on a higher gold price and increased production, the global gold producer says.

"There's a strong level of confidence in our ability to generate cash over the long term as we continue to make improvements to the operational side of our business," CEO Mark Cutifani said in a statement.

"The increased dividend is a sign of that growing confidence."

The final dividend of 70 South African cents a share was 17 percent more than the interim dividend of 2009 and the total dividend declaration of 130 South African cents, a 30 percent improvement on 2008's final declaration.

Adjusted headline earnings rose to US228 million, or 62 US cents a share for the three months to December 31, compared with US162 million, or 45 US cents in the previous quarter, AngloGold Ashanti said.

The figure for the third-quarter excluded the cost of buying back hedge contracts.

AngloGold Ashanti - listed on five stock exchanges including the JSE - had over the past year reduced net debt by a third to US868 million and cut its hedge commitments by more than two-thirds to 3.9 million ounces to increase exposure to the gold price.

The company said it had improved its safety performance in key areas during the fourth quarter.

"The lost time injury frequency rate improved by seven percent to 6.54 per million hours worked during the quarter.

"Regrettably, two of the company's employees were fatally injured in separate incidents in Guinea and South Africa."

AngloGold Ashanti's South African mines had been affected by safety-related stoppages, with production declining seven percent to 448,000 ounces and costs rising 10 percent to US575 per ounce.

"The two-month stoppage at TauTona to complete a shaft inspection and associated infrastructure repairs was concluded on schedule at the end of December and the mine restarted as expected in early January," the company said.

Production in 2010 was anticipated to be between 4.5 million ounces and 4.7 million ounces at a total cash cost of US590 per ounce to US615 per ounce.