That was an increase of just $2m over the previous quarter despite the fact that gold production was up 11%.

Godsell: expects the gold price to rise further

The rise also failed to reflect the soaring price of the precious metal in recent months.

The company said its profits had been somewhat held back by its hedging strategy - where it uses the futures markets as an insurance policy against fluctuations in the price of gold.

Anglo Gold has already sold about 30% of the gold it will mine over the next five years at an agreed price.

That will be good news for the company and its shareholders if the market price of gold falls, but it will prove costly if the price stays high.

Expansion plans

Anglo Gold's chief executive Bobby Godsell told the BBC's World Business Report that he expected the price of gold to rise in the year ahead, with jewellery sales likely to be strong, unless there was a deep recession.

But he insisted that even though that meant Anglo Gold would lose out for the time being, in the long term the strategy had been prudent.

The company has also benefited from the dramatically higher rand price which has made it easier for the company to expand outside South Africa.

It plans to develop six deep level mines in the next two years.

Anglo Gold has eight mines in South Africa and 12 others in the rest of Africa, Australia, and North and South America.