AngloGold Ashanti Ltd. reported a loss of $72 million in the three months ending Sept. 30, compared with a profit of $41 million a year ago, missing expectations as low gold prices continued to challenge the world's No. 3 producer of the precious metal.

The Johannesburg-based mining company reported a 22% drop in revenue to $987 million, beating expectations of a 29% slide in the quarter.

As miners have had to dig ever deeper to reach South Africa's gold deposits, massive cost increases including labor and electricity have hit profitability as gold prices have tumbled in the global market. AngloGold has cut overhead expenditure by more than two-thirds since the end of 2012 to combat gold prices, which are down more than 40% from 2011 highs above $1,900 an ounce. The company received an average price of $1,123 an ounce, down 12% from $1,281 a year earlier.

The company's huge net debt fell by 25% from the previous quarter to $2.32 billion, mainly due to proceeds from the sale of the company's Colorado gold mine, Cripple Creek & Victor.

A joint venture to develop and operate the company's Obuasi mine in Ghana with Randgold Resources Ltd. could help reduce that debt further. "We're working hard to consummate the JV early next year," Srinivasan Venkatakrishnan, the company's chief executive, said Monday.

AngloGold produced 955,000 ounces of gold from continuing operations during the three months ended Sept. 30, down 11% from the same period a year earlier, but up 0.5% from the second quarter of 2015. All-in sustaining costs dropped 9.4% from a year earlier to $937 an ounce. The company also lowered its guidance for its 2015 all-in sustaining costs from $1,000 to $1,050 an ounce to between $950 and $980 an ounce.

"These results show relentless cost discipline and continued delivery on our strategic commitments," Mr. Venkatakrishnan said.

AngloGold also managed to reach a three-year wage deal in October with the majority of its workers' unions, concluding contentious four-month negotiations and effectively eliminating the chance of a strike.

After plunging as much as 27% year-to-date in August, AngloGold's shares are currently trading down 3.8% year-to-date on the Johannesburg Stock Exchange.

Write to Alexandra Wexler at alexandra.wexler@wsj.com

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(END) Dow Jones Newswires

November 09, 2015 02:55 ET (07:55 GMT)

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