JOHANNESBURG (miningweekly.com) – “It's been an extraordinary period by any measure,"was the description of AngloGold Ashanti CEO Alberto Calderon of his company’s first-half performance when he presented second-quarter (Q2) results of 46%-higher earnings to $2-billion and 36%-higher free cash flow to $727-million.

Regarding the half year, Calderon remarked: “We probably had the best Ebitda growth year-on-year of all of the large gold companies, comfortably outstripping the rise in the gold price, along with a more than doubling in cash flows. We made sure that shareholders see the full benefit and see it right away, with just under a billion dollars in dividends declared over six months. It's been an extraordinary period by any measure." (Also watch attached Creamer Media.)

“As we look to Q2, there was a production impact from both the Serra Grande sale and the temporary safety suspension at Obuasi. On the positive side of the ledger, we had standout performances at Tropicana and Cuiabá.

"Total cash costs to the group were $1 480 per ounce. Once again, as with the half year, the macro context is critical. Royalties, fuel broad inflation, foreign exchange basically accounted for all of the increase. While this impact is driving cost inflation across the industry, our underlying operational discipline is firmly intact, and that discipline is why our financial metrics are so strong.

“We've ensured that earnings and cash flow grow well ahead of the gold price. Ebitda was up 46% to $2-billion. Headline earnings were 58% better at $1-billion.

“You can see our cash flows remain robust. Cash generated from operations rose 49% to $1.8-billion. As we expected, cash tax is more than doubled year-over-year to $542-million.

"This reflects not only our improved profitability but also the timing of payments across our operating jurisdictions. Importantly, it is a seasonal peak.,” Calderon noted in the presentation covered by Mining Weekly.

AngloGold has undertaken an in-depth review of its portfolio to identify opportunities to create additional value from its current suite of operating assets.

A pipeline of high-return, capital-efficient brownfield opportunities with the potential to increase gold production from 2029 onwards has been identified.

These opportunities span mining, processing and recovery improvements at Obuasi, Geita, Sukari, Siguiri and Cuiabá.

The strategy is focused on leveraging existing infrastructure and orebodies to bring forward potentially high-return ounces from existing assets.

Work is also underway to advance the longer-term, Tier 1 growth opportunities from the North Bullfrog and Arthur Gold projects in Nevada.

The priority is to unlock the wealth of untapped value within existing mines to boost production, extending life and lowering unit costs by expanding capacity and using the infrastructure already in place.

The $0.72 per share second-quarter lifts dividend declared for the first half of 2026 to $949-million, or $1.88 per share, compared with $469-million, or $0.925 per share in the corresponding period of 2025.

A proposed $2-billion share buyback programme was approved by shareholders on July 23 and is now awaiting South African Reserve Bank approval.

Q2 gold production was a 7%-lower 744 000 oz, total cash costs a 21%-higher $1 480/oz and capital expenditure a 44%-higher R549-million.

The strategic initiatives on which AngloGold continues to focus are predictable operating results; providing competitive returns to shareholders; bringing a new production centre into operation in southern Nevada; the steady ramp-up of Obuasi mine in Ghana; and realising organic growth projects at its mines in Tanzania, Guinea, Egypt and Brazil.

Second-quarter cash generated from operations was a 49%-higher $1.8-billion, compared with $1.2-billion in the second quarter of 2025.

Second-quarter cash taxes more than doubled year-over-year to $542-million, from $237-million in the second quarter of 2025, reflecting the higher gold price and improved profitability as well as timing of tax payments across the operating jurisdictions. Remaining 2026 cash taxes are expected to be paid in equal quarterly instalments of between $230-million to $250-million.

Gold production is expected to be significantly weighted toward the second half of 2026. As production volumes increase, unit costs are expected to trend lower during the second half.

Full-year 2026 guidance for gold production, costs and capital expenditure, which was issued in February 2026, remains unchanged.

On April 16, 2026 the group completed the repurchase of $666-million principal amount of its outstanding bonds. This bond buyback has reduced gross debt, lowered future interest obligations, and partially eliminated maturities in 2028 and 2030, enhancing financial flexibility through the cycle.

To further optimise capital allocation, on 23 July shareholders approved a proposed share repurchase programme for up to $2-billion of AngloGold Ashanti’s ordinary shares. This programme is expected to provide an additional mechanism for shareholder returns, alongside the existing dividend framework.

Crucially, the company has ample capacity to continue investing in safe, stable operations and fund its pipeline of high-return organic growth projects.

Continued focus on rigorous cost discipline held first-half cash costs per ounce for managed operations at $1 431/ oz.

External pressures included a $93/oz rise in royalties owing to higher realised gold prices, $60/oz in inflationary impacts, specifically related to higher labour and mining contractor costs, a $50/oz impact from foreign exchange movements and the follow-on impact of rising oil prices contributed a further $20/oz increase in costs. Structural efficiencies delivered through the Full Asset Potential programme reduced first-half underlying, controllable costs by $20/oz.

Second-quarter group cash costs per ounce rose to $1 480/oz, predominantly driven by macroeconomic market factors representing a $216/oz increase, while operational factors contributed $29/oz.

The external factors included: general inflation (average CPI) linked mainly to increases in labour and mining contractor costs (+$71/oz); higher gold-price-linked royalties (+$67/oz); and elevated fuel prices ($43/oz), reflecting the 45% increase in average Brent crude prices as the company prioritised fuel supply security during the ongoing US-Iran conflict.

Foreign exchange headwinds added $35/oz, driven primarily by the year-on-year strengthening of the Australian dollar (+10%), Brazilian real (+11%) and Ghanaian cedi (+9%) against the US dollar.

Second-quarter all-in sustaining costs per ounce were $2 039/oz on lower gold sales and higher sustaining capital expenditure, which rose to $332-million.

Investment in mineral reserve development and mine life extensions advanced its pipeline of organic greenfield and brownfield growth projects.

Non-sustaining capital expenditure doubled to $217-million.

An investigation into the tragic fatality of a contractor on April 24 at the Obuasi mine in Ghana has been completed and work is underway to implement corrective actions.

The total recordable injury frequency rate at managed operations during the second quarter improved to 0.79 injuries per million hours worked.