(Bloomberg) -- AngloGold Ashanti Ltd. reported a drop in full-year profit on rising costs and lower output following a temporary halt to operations at a key African mine.
Net income slumped 35% to $622 million because of an accident at the Obuasi mine in Ghana and higher costs partly linked to a restructuring, it said in a statement. AngloGold declared a final dividend of 14 cents a share, raising the full-year payout to 20 cents.
The Johannesburg-based gold miner lagged peers in the past year after the halt to output at Obuasi, where it had been ramping up production following $545 million of investment.
Gold production fell 12% to about 2.47 million ounces, while expenses surged 31% to $1,355 an ounce. AngloGold is forecasting output of 2.55 million ounces to 2.8 million ounces of gold this year as production at Obuasi gradually recovers.
As part of a reorganization aimed at saving costs, the company cut 215 jobs across all of its operations. AngloGold also announced that Sicelo Ntuli, the chief operations officer for Africa, is leaving the company as it implements a new model, while Chief Financial Officer Christine Ramos is retiring.
The new operating model may help the company cut spending and improve efficiency, steps that are “essential elements for us to start closing the value gap with our peers,” Chief Executive Officer Alberto Calderon said in the statement.
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