AngloGold Ashanti Posts 339% Year-on-Year Adjusted EBITDA Increase
AngloGold Ashanti Plc has reported its strongest gold production quarter for 2024 from managed operations in the three months ended September 30, 2024, driving significant year-on-year gains in earnings and free cash flow.
The Company, in the release of its Q3 2024 financial results reaffirmed its full-year guidance for gold production, costs and capital expenditure.
“Tight control of costs and active management of our working capital means that the higher gold price has flowed through to our bottom line. We’re looking for additional improvements to production and margins, to ensure we deliver an even stronger fourth quarter and continue to capitalise on this healthy gold price environment,” CEO Alberto Calderon said.
AngloGold Ashanti within the review period saw resilient performances from several key operations. The Australian portfolio recovered well from rains and flooding in the first quarter, while the operational turnaround of its Brazilian operations continued to gain momentum with the resumption of processing of gold concentrate at the Queiroz plant during September.
Solid cost control and active management of working capital helped ensure that higher revenues were reflected in stronger earnings and cash flows.
Headline earnings(3) of $236m, or 56 US cents per share, in the third quarter of 2024, compared to a headline loss(3) of $194m, or 46 US cents per share, in the third quarter of 2023.
Adjusted earnings before interest, tax, depreciation and amortisation rose 339% to $746m in the third quarter of 2024 from $170m in the same period last year. Free cash flow rose sharply to $347m during the third quarter of 2024, from $20m in the same period a year earlier.
The average gold price received per ounce for the group rose 28% to $2,449/oz during the third quarter of 2024 from $1,908/oz in the third quarter of last year.
A solid overall performance from AngloGold Ashanti’s managed operations helped the Company deliver a strong cash cost performance despite persistent high inflation across several of its operating jurisdictions.
Total cash costs per ounce for the group rose 8% year-on-year to $1,172/oz versus $1,089/oz in the third quarter of last year.
Total cash costs per ounce for managed operations rose by only 3% year-on-year to $1,186/oz versus $1,152/oz in the third quarter of last year, demonstrating disciplined and consistent focus on costs despite inflationary pressure across its operating jurisdictions and the impact of higher royalties paid, driven by the increase in the gold price.
All-in sustaining costs per ounce for the group rose 10% to $1,616/oz during the third quarter of 2024 versus $1,469/oz in the third quarter of last year due to increased total cash costs and rehabilitation costs.
Gold production for the group was 657,000oz for the third quarter of 2024 versus 676,000oz in the same period of 2023, due to lower production from the Kibali joint venture, where lower grades resulted in production of 71,000oz compared with 99,000oz in the third quarter of 2023.
Gold production for managed operations rose 2% year-on-year to 586,000oz, from 577,000oz in the third quarter of 2023. Gold production was stronger at Obuasi (15%), Siguiri (9%), Tropicana (14%), Cerro Vanguardia (11%) and Sunrise Dam (14%).
At Obuasi, third-quarter gold production increased 15% year-on-year as total grades and underground tonnages rose, despite a continued impact on production of reduced mining flexibility in Block 8 and difficult ground conditions in higher-grade stopes.
Notwithstanding these near-term challenges, total cash costs per ounce improved 20% year-on-year to $1,153/oz and AISC per ounce at $2,063/oz was 17% lower over that period.
