KEY POINTS
- AngloGold’s free cash flow surged 149 percent in Q2.
- The Obuasi and Sukari mines delivered strong output.
- Tight cost control helped offset rising expenses.
AngloGold Ashanti Ltd. posted a strong second-quarter performance, with free cash flow surging 149 percent to $535 million, supported by higher gold prices and increased output from its key mines.
Gold production jumped 21 percent to 804,000 ounces in the three months through June, while the average gold price received soared 41 percent to $3,287 per ounce. That combination helped the company report adjusted EBITDA of $1.44 billion and headline earnings of $639 million, a 151 percent increase year-over-year.
Free cash flow climbs on higher output
The free cash flow surge was attributed to strong performances at Obuasi in Ghana, Geita in Tanzania, and Egypt’s Sukari mine—which produced 129,000 ounces in just its second full quarter under AngloGold’s ownership. Obuasi’s output rose 31 percent to 71,000 ounces, while Geita delivered 138,000 ounces, up 20 percent year over year.
Gold prices fuel margin expansion
Despite an 8 percent increase in total cash costs to $1,226 per ounce, the company maintained its profitability. All-in sustaining costs for managed operations rose only 4 percent to $1,694 per ounce—showing tight cost discipline even amid inflation and rising royalties.
Moreover, capital expenditure increased 33 percent to $381 million, driven by project investments at Sukari and Geita. Sustaining capital rose 28 percent to $273 million.
AngloGold tightens portfolio, trims debt
Adjusted net debt fell 92 percent to $92 million, bringing the net debt to EBITDA ratio to just 0.02 times. The company is divesting non-core assets, including the Serra Grande mine in Brazil and exploration projects in Côte d’Ivoire, while reinforcing its U.S. portfolio through the proposed acquisition of Augusta Gold Corp. in Nevada.
AngloGold also declared an interim dividend of 80 cents per share, including a true-up to 50 percent of first-half free cash flow. The company expects its inclusion in the Russell 1000®, 3000®, and Midcap® indexes to boost liquidity and visibility with U.S. institutional investors.
CEO Alberto Calderon described the quarter as “another strong result,” pointing to the company’s ability to convert production into cash flow through disciplined capital allocation.
Safety remains a priority, with the Total Recordable Injury Frequency Rate improving 17 percent to a record low of 0.80 per million hours worked.
