AngloGold Ashanti reported a 21% year-on-year increase in gold production to 804,000 ounces, which drove a 149% surge in free cash flow to $535 million for the second quarter of 2025.
The surge in free cash flow was driven by higher average gold prices, effective cost control, and strong contributions from core assets, especially Obuasi in Ghana, Geita in Tanzania, and the newly acquired Sukari mine in Egypt. The company’s average gold price received soared 41% to $3,287 per ounce which continues to fuel profitability.
The company’s adjusted EBITDA increased to $1.44 billion, while headline earnings rose sharply by 151% to $639 million. At the same time, the company cut its adjusted net debt by 92% to just $92 million, strengthening its balance sheet and improving the net debt to EBITDA ratio to just 0.02 times.
The report also showed that safety remains the company’s priority, with the Total Recordable Injury Frequency Rate improving 17% year-on-year to a record low of 0.80 injuries per million hours worked.
Operational Highlights:
- Gold production from managed operations climbed 25% year-on-year to 729,000 ounces, bolstered by sustained performance improvements at key mines and integration of Sukari.
- Obuasi’s gold output surged 31% to 71,000 ounces, with higher grades and enhanced plant recoveries.
- Geita mine delivered a solid 20% increase in gold production to 138,000 ounces due to increased mining volumes and improved grade.
- Sukari produced 129,000 ounces during its second full quarter under AngloGold Ashanti’s ownership, firmly positioning itself as a top contributor.
Cost and Capital Management
Total cash costs for the group rose slightly by 8% to $1,226 per ounce, mainly due to inflation, a 28% increase in sustaining capital expenditure to $273 million, and higher royalties driven by rising gold prices. Despite these pressures, all-in sustaining costs (AISC) for managed operations increased by just 4% to $1,694 per ounce, highlighting the company’s strong cost control during a period of growth.
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Capital expenditure increased by 33% year-on-year to $381 million, with significant investment in sustaining assets and growth projects, notably at Sukari and Geita.
AngloGold Ashanti has shown confidence in its future outlook by declaring an interim dividend of 80 US cents per share for Q2 2025. This includes a true-up to 50% of the free cash flow generated in the first half of the year. The company’s inclusion in the Russell 1000®, Russell 3000®, and Russell Midcap® Indexes also marks an important step in boosting its visibility and liquidity among U.S. institutional investors.
The company is actively optimising its portfolio, completing the sale of exploration projects in Côte d’Ivoire and announcing the proposed divestiture of the Serra Grande mine in Brazil. The company mentioned that it is consolidating its strategic presence in Nevada, USA, with the impending acquisition of Augusta Gold Corp., which will expand its footprint in one of the most promising emerging gold districts in the country.
CEO Alberto Calderon stated, “This is another strong result that again demonstrates our focus on cost control and the positive momentum we’re building across the business.” Calderon also stated that they are reaping the benefit of consistent production and cash flow growth, supported by disciplined capital allocation.
