AngloGold Ashanti (AU) H1 2024 earnings summary

Executive summary

• H1 2024 delivered strong operational and financial performance, with gold production up 2% year-on-year to 1.254Moz, driven by higher grades and operational improvements, especially in Brazil and Africa.

• Adjusted EBITDA increased 65% year-on-year to $1.12 billion, with a margin of 46%, reflecting higher gold prices and cost control.

• Free cash flow swung from a $205 million outflow last year to a $206 million inflow, supporting a 450% increase in the interim dividend to $0.22 per share.

• Proactive cost management and operational improvements, particularly in Brazil and Australia, drove significant turnaround and margin gains.

• Balance sheet remains robust with strong liquidity of $2.3 billion and low leverage (net debt/EBITDA at 0.62x).

Financial highlights

• Revenue from product sales rose to $2,552 million in H1 2024, up from $2,186 million in H1 2023.

• Headline earnings increased to $313 million ($0.74/share), up over 400% year-on-year.

• Total cash costs per ounce decreased 1% year-on-year to $1,158/oz, outperforming 6% inflation; AISC per ounce rose 2% to $1,589/oz due to higher sustaining capex.

• Free cash flow before growth capex was $337 million, nearly five times higher year-on-year.

• Net cash inflow from operating activities was $672 million, up from $293 million in H1 2023.

Outlook and guidance

• FY2024 guidance reaffirmed: gold production expected at 2,650–2,850koz, total cash costs $1,075–1,225/oz, and AISC $1,500–1,675/oz.

• Capital expenditure guidance for 2024 set at $1,130–1,360 million, with sustaining capex up 16% to $420 million.

• Company expects continued strong cash generation and healthy shareholder returns in H2 2024, with free cash flow expected to more than double H1 levels if gold prices hold.

• 2025 guidance anticipates 2% production growth and lower unit costs as efficiency programs mature.