AngloGold Ashanti posted its highest quarterly gold production for 2024, boosting earnings by 339% to $746 million. Free cash flow surged to $347 million.
AngloGold Ashanti Plc has recorded its strongest quarterly gold production for 2024, with managed operations driving exceptional year-on-year gains in earnings and free cash flow for the three months ending September 30, 2024. The company’s performance has prompted it to reaffirm its full-year guidance for gold production, costs, and capital expenditure.
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) saw a 339% year-on-year increase, reaching $746 million in Q3 2024, compared to $170 million during the same period in 2023. This substantial growth reflects higher production volumes and favorable market conditions for gold.
The company reported a significant jump in free cash flow, which rose to $347 million in Q3 2024, up from $20 million in Q3 2023. This improvement in cash generation is attributed to enhanced operational efficiencies, higher gold prices, and effective cost controls.
The 28% increase in the average gold price received per ounce was a major contributor to AngloGold Ashanti’s robust earnings, reflecting favorable market conditions. Total cash costs per ounce for the group rose by 8% year-on-year to $1,172/oz, compared to $1,089/oz in Q3 2023.
Managed operations saw a smaller increase of 3% to $1,186/oz from $1,152/oz, demonstrating effective cost control strategies despite rising input costs and higher royalties due to increased gold prices. All-in sustaining costs (AISC) for the group rose 10% to $1,616/oz, driven by higher cash costs and rehabilitation expenses.
Obuasi’s third-quarter production rose 15% year-on-year, supported by higher grades and increased underground tonnages, despite challenges from limited mining flexibility in Block 8 and difficult ground conditions. Obuasi’s total cash costs improved by 20% year-on-year to $1,153/oz, while AISC dropped 17% to $2,063/oz during the period.
AngloGold Ashanti’s strong operational performance during the quarter has enabled it to maintain its full-year guidance targets. This includes expected ranges for gold production, operating costs, and capital expenditures, highlighting the company’s ability to achieve consistent output while managing costs.
The strong quarterly output underscores the company’s effective management of its mining assets and operations, contributing significantly to overall revenue growth. AngloGold Ashanti’s focus on controlling operational costs has further supported its profitability, ensuring that gains from production volumes translate to robust cash flow and earnings improvements.
The Q3 2024 results showcase AngloGold Ashanti’s strategic ability to capitalize on market dynamics while maintaining operational excellence. With reaffirmed production and cost targets, the company is well-positioned to sustain its strong performance trajectory through year-end, reinforcing its competitive standing in the global gold mining industry.
