Dar Es Salaam — Despite facing challenges that have led to a slump in the production in the past, AngloGold Ashanti delivery for the third consecutive quarter has improved.

AngloGold Ashanti owns 50% of the Geita mine in Tanzania, one of the largest gold mine in Africa. The firm's production worldwide was reported at 1.265milion ounces, slightly one per cent higher than previous quarter, with Obuasi and Cerro Vanguardia in Ghana, posting substantial improvements.

Total cash costs is reported at USD 486 per ounce - better than guidance but higher than previous quarter due to wage increases, power tariffs, inflation and inventory movements - while costs are expected to drop to approximately USD460 per ounce in the fourth quarter.

Uranium production is reportedly to increase by 7% to 346,000 pounds, with enhanced exposure to the spot market expected in the fourth quarter. Notwithstanding, the adjusted headline loss of $119 million was incurred, as a result of accelerated hedge reduction.

The Greenfields exploration projects continue to make solid progress, particularly in Australia and Colombia.

AngloGold Ashanti reported an increase in gold production in July 2008 where Cerro Vanguardia in Argentina and Obuasi in Ghana posted significant improvements against the previous quarter, with gold production increasing 59% and 16% respectively.

The South African operations continued to perform steadily, using 92.4% of power supply, while operating at 100% production capacity.

AngloGold Ashanti is expecting gold production of approximately 1.25million ounces and total cash costs of approximately $460 per ounce, based on the following exchange rates assumptions: R/USD.40, $/$0.80, BRL/USD1.90 and Argentinean peso/USD 3.11.

Commenting on the quarter, chief executive officer (CEO), Mark Cutifani said, "We have now delivered on production and cost commitments for three consecutive quarters."