AngloGold Ashanti (NYSE: AU) reported a 46% year-over-year increase in EBITDA, reaching $2 billion for Q2 2023, while headline earnings rose 58% to $1 billion. Basic earnings per share climbed to $1.97 from $1.32 in the same period last year. Free cash flow improved by 36% to $727 million, driven by a 41% rise in net cash flow from operating activities to $1.4 billion, despite disruptions including a two-week operational suspension at the Obuasi mine.
Total cash costs increased by 21% to $1,480 per ounce, affected by external pressures such as inflation and higher energy costs. The company ended the quarter with net cash of $991 million, significantly up from a year earlier. AngloGold declared $364 million in dividends for Q2, totaling $949 million for the first half of the year. They anticipate second-half production could increase by about 6% compared to the first half if operations proceed as planned.
Key operational details include expectations of 150,000 ounces of production from the Obuasi mine in the second half and a strong performance from Tropicana and Cuiabá. Management emphasized a focus on organic growth within its existing portfolio, targeting production increases of 300,000 to 450,000 ounces over the next three years.
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