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May 10, 2021, 1:39 a.m. EDT

AngloGold Ashanti profit jumps on stronger prices

By Jaime Llinares Taboada

AngloGold Ashanti Ltd. on Monday reported an improved profit for the first quarter of the year, despite lower gold production and sales.

The Johannesburg-based mining company made a net profit of $203 million in the three months to March 31, up 51% from $134 million a year earlier. The improvement was driven by stronger gold prices, which rose 13% to $1,788 an ounce.

However, gold production and sales decreased 7% each, to 588,000 ounces and 608,000 ounces, respectively. All-in sustaining costs increased 26% to $1,287 an ounce, the company said.

"In the first quarter of 2021, total cash costs increased mainly as a result of lower grades and the drawing down on ore stockpiles at some of the operations while waste stripping and underground development progressed, as well as inflationary pressures recorded across most of the portfolio," AngloGold Ashanti said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

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