JOHANNESBURG (miningweekly.com) – The second-quarter earnings and free cash flow of AngloGold Ashanti more than doubled year-on-year, driven by the high gold price and what the New York- and Johannesburg-listed company highlights as continued cost discipline and a 21% increase in gold production.

The second-quarter free cash flow of $535-million was 149% up on the corresponding period of last year with the 25% gold production from managed operations supported by strong contributions from Obuasi in Ghana and Geita in Tanzania as well as the addition of the Sukari gold mine in Egypt.

The average second-quarter gold price received per ounce increased to $3 287/oz from $2 330/oz in the corresponding period of 2024.

“This is another strong result that again demonstrates our focus on cost control and the positive momentum we’re building across the business,” AngloGold CEO Alberto Calderon stated in a release to Mining Weekly.

“We're reaping the benefit of consistent production and cash flow growth, supported by disciplined capital allocation,” Calderon added.

An interim dividend of $0.80 per share was declared, which includes the minimum quarterly dividend of $63-million or $0.125, with the balance reflecting the decision to pay half of free cash flow generated for the six months through to June 30.

While dividend policy commits to this ‘true up’ payment of 50% of free cash flow annually at year-end, the board used its discretion to make the payment at the half-year given the strength of cash flows and its confidence in the outlook.

Adjusted net debt is down 92% year-on-year to $92-million, and the ratio of adjusted net debt to earnings before interest, taxes, depreciation and amortization (Ebitda) improved to 0.02x, from 0.62x a year earlier.

The group ended the second quarter to June 30 with liquidity of $3.4-billion, including $2-billion in cash and cash equivalents.

Adjusted Ebitda increased 111% to $1.44-billion, headline earnings rose to $639-million, and net cash flow from operations rose to $1.02-billion, boosting free cash flow for the quarter.

Second-quarter gold production rose 21% to 804 000 oz from Sukari and improved performances were reported at Obuasi (+31%), Geita (+20%), Cerro Vanguardia (+7%), Cuiabá (+6%) and Siguiri (+6%).

Production improvements were led by Geita, which consistently delivers strong operating results, and Obuasi, where the ramp-up of underhand drift-and-fill mining progressed on schedule, supporting the 21% year-on-year increase in grade. Siguiri, Cerro Vanguardia, and Cuiabá also posted modest gains. These were partly offset by declines at Iduapriem, Serra Grande and Tropicana, while Sunrise Dam held broadly steady.

Group cash costs increased by 8% to $1 226/oz, while all-in sustaining costs rose 7% to $1 666/oz, driven primarily by a 28% increase in sustaining capital expenditure, inflationary cost pressures of 5%, and a $60/oz average increase in the overall royalty charge linked to the higher gold price – factors partly offset by higher gold sales volumes.

Second-quarter capital expenditure (capex) rose to a 33%-higher $381-million, with sustaining capex increasing 28% to $273-million year-on-year. The increase in sustaining capex reflects the inclusion of Sukari and ongoing investment to support asset integrity and long-term operational resilience, in line with strategic priorities.

A strong safety performance was maintained in the second quarter, with a total recordable injury frequency rate of 0.80 injuries per million hours worked, an improvement of 17% year-on-year and below industry benchmarks.