AngloGold Ashanti Reports Strong Financial Results for First Half of 2024
Intellectia.AI Updated: 2024-08-06
AngloGold Ashanti Reports Strong Financial Results for First Half of 2024
AngloGold Ashanti plc ("AngloGold Ashanti", "AGA" or the "Company") reported its financial results for the first half of 2024, showcasing notable improvements in both operational and financial performance.
Key Financial Metrics
| Metric | H1 2024 | H1 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Earnings Per Share | $0.74 | -$0.09 | +922% | $0.00 |
| Adjusted EBITDA | $1.118 billion | $676 million | +65% | - |
| Free Cash Flow | $206 million inflow | $205 million outflow | - | - |
| Basic Earnings | $311 million | -$39 million | +897% | - |
Interpretation: AngloGold Ashanti demonstrated a robust year-on-year improvement in earnings per share, driven by higher gold sales volume, better average gold price, and significant cost control. Adjusted EBITDA saw a substantial rise due to the improved operational efficiency and recovery in gold prices.
Segment Revenue Performance
| Segment | Revenue H1 2024 | Revenue H1 2023 | YoY Change |
|---|---|---|---|
| Americas | 257,000oz | 234,000oz | +10% |
Interpretation: The Americas segment, particularly the turnaround in Brazil, significantly contributed to the Company's improved performance, recording a 10% growth in gold production year-on-year. The total cash costs per ounce in the region also improved markedly.
Key Operational Data
| Metric | H1 2024 | H1 2023 | YoY Change |
|---|---|---|---|
| Gold Production | 1.25 Moz | 1.23 Moz | +2% |
| Total Cash Costs/oz | $1,158 | $1,169 | -1% |
| AISC/oz (Group) | $1,589 | $1,555 | +2% |
Interpretation: Gold production saw a modest increase compared to the first half of the previous year. Improved cost management led to a slight decrease in total cash costs per ounce, highlighting the Company's operational efficiency amidst inflationary pressures.
Comments from Company Officers
CEO Alberto Calderon stated, “These results show the hard work that’s been done to improve the fundamentals of our business, to drive productivity benefits and manage costs to ensure we capture the benefit of stronger gold prices. We expect to deliver an even stronger second-half performance.”
Dividends and Share Repurchase Program
AngloGold Ashanti declared an interim dividend of 22 US cents per share, a significant increase from the 4 cents per share interim dividend declared in the first half of 2023. There were no updates on any share repurchase programs.
Forward Guidance
The Company reaffirmed its full-year 2024 guidance across all key metrics, indicating confidence in continued strong performance in the second half of the year.
Stock Price Movement
After the earnings release, the stock price of AngloGold Ashanti saw a slight decrease of 1.51%.
In summary, AngloGold Ashanti's strong first-half performance, driven by operational improvements and proactive cost management, underscores the Company's resilience and strategic execution in an inflationary environment. The significant dividend increase reflects management's confidence in sustained financial strength and future growth prospects.
