AngloGold Ashanti (AU) Q3 2024 TU earnings summary

Executive summary

• Achieved record free cash flow of $347 million in Q3 2024, a 17-fold increase year-over-year, driven by higher gold prices and strong operational performance.

• Adjusted EBITDA surged 339% year-over-year to $746 million, with margin up to 52%.

• Q3 2024 gold production reached 657,000oz, with managed operations producing 586,000oz, up 2% year-over-year, and notable gains at Obuasi, Siguiri, Tropicana, Cerro Vanguardia, and Sunrise Dam.

• The Centamin acquisition, including the Sukari mine, was approved with 98% shareholder support and is expected to close in November 2024, enhancing the portfolio with a Tier 1 asset and boosting NAV and free cash flow per share.

• Maintained industry-leading safety performance, though one fatality occurred at Kibali JV in Q3 2024.

Financial highlights

• Q3 2024 group revenue was $1,491 million, up from $1,140 million in Q3 2023; gross profit rose to $541 million.

• Headline earnings reached $236 million ($0.56/share), reversing a $194 million loss ($0.46/share) in Q3 2023.

• Net cash inflow from operating activities increased 121% to $606 million.

• Average gold price received in Q3 2024 was $2,449/oz, up 28% year-over-year.

• Group AISC rose 10% year-over-year to $1,616/oz, and total cash costs per ounce for managed operations increased by 3% to $1,172/oz.

Outlook and guidance

• FY 2024 guidance reaffirmed: gold production 2.65–2.85Moz (group), managed operations 2.33–2.49Moz, AISC for managed operations $1,575–$1,675/oz, and total cash costs $1,125–$1,225/oz.

• Capital expenditure guidance: $1,130–$1,360 million (group), with sustaining capex at $850–$1,050 million.

• Integration of Centamin expected to drive immediate improvements in production and cost profile.

• Merlin feasibility study in Nevada targeted for completion in H2 2025.

• Company expects to be fully unhedged on gold production by year-end 2024.