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AngloGold Ashanti (AU - Snapshot Report) posted its operational data for the second quarter of 2013. The company’s production for the quarter was 935,000 ounces (oz) at total cash between $900/oz and $920/oz. The production is in line with the market’s guidance range of 900,000 oz to 950,000 oz.

Two of AngloGold’s mines Tropicana Joint Venture in Australia and the Kibali Joint Venture in the Democratic Republic of Congo are currently in the development stage and are expected to come online before the end of 2013. Jointly, the mines are expected to produce 550,000 oz to 600,000 oz of gold in 2014 at a combined average total cash cost of less than the company’s current average.

AngloGold is aiming to reduce costs and optimize free cash flow generation and enhance/maintain its margins and returns. As a result of this strategy and given the drop of average quarterly gold price by $220/oz, the company revised its annual guidance for 2013 and now expects it to be in the range of 4 million ounces (Moz) and 4.1 Moz, compared with the previous expectation of 4.1 Moz to 4.4 Moz.

The company is focusing on efficiency and curtailing its costs, overheads and capital. AngloGold is working towards realizing savings as well as sustaining capital expenditure over the next 18 months. The company will curtail those operations that do not yield higher returns.

AngloGold has reviewed the carrying value of its mining assets (including ore-stock piles). The company expects to take a charge of $2.2 billion to $2.6 billion (post-tax) in relation to impairments and revaluation to net realisable value of its mining assets (including ore stock piles), which will be reflected in its second-quarter 2013 results

AngloGold currently retains a Zacks Rank #5 (Strong Sell). The company expects to release its second-quarter 2013 results in Aug.

Other companies in the mining industry with a favorable Zacks Rank are NovaGold Resources Inc. (NG - Snapshot Report), Midway Gold Corp. (MDW) and Pretium Resources Inc. (PVG - Snapshot Report). All of them carry a Zacks Rank #2 (Buy).

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