Anglogold Ashanti reports improvements in gold production
Johannesburg – AngloGold Ashanti reported improvements in gold production and total cash costs per ounce for the first six months of the year compared with the first six months of last year, helped by a significant turnaround at its Brazil operations, which in turn drove significant year-on-year gains in cash flow and earnings. With further operating improvements expected in the second half of 2024, guidance for 2024 was maintained.
In the first half of 2024, gold production rose 2% year-on-year to 1.25Moz from 1.23Moz in the same period a year earlier, with total cash costs per Ounce for the group decreasing 1% year-on-year to $1,158/oz from $1,169/oz in the same period last year. This compared to a realised inflation rate for the Company of about 6% during the first half of 2024, which represents the sum of price-related increases in cost of goods and services at each site. All-in sustaining costs (“AISC”) per ounce for the group rose 2% year-on-year in the first six months of 2024 to $1,589/oz compared with $1,555/oz in the same period in 2023.
Total cash costs per ounce for subsidiaries improved 1% year-on-year from $1,209/oz in the first half of 2023 to $1,200/oz in the first half of 2024.
Total cash costs per ounce* for joint ventures improved 2% year-on-year from $880/oz in the first half of 2023 to $866/oz in the first half of 2024.
AISC per ounce for subsidiaries increased 2% year-on-year from $1,624/oz in the first half of 2023 to $1,658/oz in the first half of 2024. AISC per ounce for joint ventures increased 2% year-on- year from $1,060/oz in the first half of 2023 to $1,078/oz in the first half of 2024.
Improved operational performance and strong cost control helped AngloGold Ashanti capture the benefit of a higher average gold price received per ounce, with Adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA*”) rising 65% year-on-year in the first half of 2024 to $1.118bn from $676m in the first half of 2023. Free cash flow for the first half of 2024 was an inflow of $206m compared to an outflow of
$205m in the same period in the previous year.
“These results show the hard work that’s been done to improve the fundamentals of our business, to drive productivity benefits and manage costs to ensure we capture the benefit of stronger gold prices,” CEO Alberto Calderon said. “We expect to deliver an even stronger second-half performance.”
