AngloGold Ashanti reported an improved performance in the second quarter, driven by greater gold production, higher realised prices and “disciplined” cost management.
Gold production rose 21% year on year to 804,000 ounces, driven by higher output from Obuasi in Ghana, Geita in Tanzania and the first full-quarter contribution from Egypt’s Sukari mine.
Managed operations saw increased production alongside a higher average gold price, the company said in a statement on Friday.
Obuasi benefited from higher ore grades as its underground operations ramped up, while Geita continued to show steady growth. Other sites, including Cerro Vanguardia and Cuiabá, posted modest gains, though some non-managed joint ventures like Kibali recorded lower output.
The company said cost pressures remained contained, with all-in sustaining costs rising only slightly. This was primarily due to higher spending on equipment and infrastructure, a moderate inflation rate of about 5% and increased royalties resulting from stronger gold prices.
Gold income jumped 78% to $2.4bn (R43.3bn). Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) more than doubled to $1.4bn, while headline earnings rose 151% to $639m. Free cash flow surged 149% to $535m.
The company declared an interim dividend of 80 US cents per share.
AngloGold Ashanti reaffirmed its 2025 outlook, focusing on margin growth, longer mine life and disciplined spending. It expects to produce 2.9-3.23-million ounces of gold, with total cash costs of $1,125-$1,225 an ounce.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.