South Africa's AngloGold Ashanti reported Thursday a strong financial performance for the second quarter of 2006, with adjusted headline earnings up 63% to $140 million, primarily as a result of improved production and a 10% increase in the price received, to $600/oz. Production was 6% higher at 1.415 million oz of gold, with total cash costs down 1% to $305/oz.

The company's net debt level has been reduced over the quarter to $1.03 billion from $1.66 billion year on year. In respect of the hedge book, the hedge delta was 315 mt or 10.1 million oz as at June 30, 2006, marking a reduction of 1.1 million oz, or 10%, as compared to the previous quarter's reported hedge delta.

CEO Bobby Godsell said: "I'm pleased with AngloGold Ashanti's solid operating performance and good financial results for the second quarter."