Gold News

AngloGold lowers 2009 production forecast

AngloGold Ashanti revealed yesterday (November 2nd) that it has been forced to lower its full-year gold production estimate for 2009.

The world's fourth-largest gold producer now expects output to be between 4.55 million and 4.6 million ounces, in comparison to its original target of five million ounces.

According to the firm, the move can be explained by the suspension of underground mining at its TauTona operation in South Africa over safety concerns.

CEO Mark Cutifani confirmed that the facility could be closed for two months as AngloGold carries out an inspection of the steelwork along the mine's shaft system.

"TauTona could potentially be closed until the end of this year while this remedial action is completed," he said.

"The effect of this interruption has resulted in a revision of our annual guidance."

Anyone with a Gold Investment will presumably welcome the news, as lower production - particularly at major firms such as AngloGold - tends to increase demand and therefore prices.

Meanwhile, Barbara-Ann King, head of investments at Barclays Stockbrokers, which is the UK's largest stockbroker, has also endorsed the value of Investing in Gold.

She explained that interest in the yellow metal has "soared in the past nine months" and that worries over the dollar - particularly over its reserve currency status - could see this trend continue for the foreseeable future.

"Central governments around the world have already reacted by remarking that gold may become the reserve currency of choice over the dollar as its value drops compared to other safe havens," she said.

"If the value of the dollar drops further there may be a reverse effect on the price of gold."

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