AngloGold Ashanti delivered a strong financial performance in the second quarter of 2026, supported by higher gold prices, disciplined cost management and robust cash generation despite a decline in production.

The global gold mining company reported a profit of $1.19 billion for the three months ended June 30, 2026, representing a 48% increase from the $806 million recorded in the same period of 2025.

Profit attributable to shareholders rose by almost 50% to $1.00 billion, from $669 million, while earnings per share increased to 197 US cents, compared with 132 US cents in Q2 2025.

Revenue and EBITDA Rise Strongly

Gold income increased by 26% to $3.03 billion, from $2.41 billion a year earlier. Gross profit also climbed 42% to $1.70 billion, compared with $1.20 billion in Q2 2025.

AngloGold Ashanti’s EBITDA rose 46% year-on-year to $1.97 billion, while headline earnings increased 58% to $1.01 billion.

The improvement was largely supported by a significant increase in the average gold price received. The company realised an average price of $4,446 per ounce during the quarter, 35% higher than the $3,287 per ounce received in the corresponding period of 2025.

Free Cash Flow Reaches $727 Million

The company generated $1.43 billion in net cash from operating activities, up from $1.02 billion a year earlier.

Free cash flow increased 36% to $727 million, from $535 million in Q2 2025. For the first six months of the year, free cash flow more than doubled to $1.90 billion, compared with $938 million in H1 2025.

The strong cash generation helped AngloGold Ashanti move from a net debt position of $311 million at the end of June 2025 to a net cash position of $991 million at the end of June 2026.

The improved balance sheet came despite cash tax payments more than doubling to $542 million during the quarter, reflecting stronger profitability, higher gold prices and the timing of tax payments across its operating markets.

Production Falls as Costs Increase

Group gold production declined by about 7% to 744,000 ounces, compared with 804,000 ounces in Q2 2025.

The reduction was mainly attributed to the sale of the Serra Grande mine in December 2025, lower output from the Obuasi mine following a contractor fatality in April, and planned mine sequencing and maintenance at some operations.

Although production declined, the company sold 753,000 ounces during the quarter, compared with 801,000 ounces a year earlier.

Total cash costs increased 21% to $1,480 per ounce, while all-in sustaining costs rose 22% to $2,039 per ounce.

The company attributed the cost increases to inflation, higher labour and contractor expenses, increased gold-price-linked royalties, higher fuel prices and stronger operating currencies, including the Ghana cedi, against the US dollar.

Sustaining capital expenditure rose to $332 million, from $273 million, while non-sustaining capital expenditure doubled to $217 million. Total capital expenditure for the Group increased to $549 million, compared with $381 million in Q2 2025.

AngloGold Declares 72-Cent Interim Dividend

AngloGold Ashanti declared a Q2 2026 interim dividend of 72 US cents per ordinary share, equivalent to a total shareholder distribution of approximately $364 million.

This takes the total dividend declared for the first half of 2026 to 188 US cents per share, or $949 million, compared with 92.5 US cents per share declared during H1 2025.

For shareholders on the Ghana register, the dividend will be converted into Ghana cedis using the exchange rate applicable on August 14, 2026.

Using an illustrative exchange rate of GH¢11.66 to the US dollar, the company estimated a gross dividend of approximately GH¢8.3952 per ordinary share. However, the final amount will depend on the actual conversion rate.

The last day to trade the shares with entitlement to the dividend is August 18, 2026. The shares will trade ex-dividend from August 19, with a record date of August 21 and an approximate payment date of September 4, 2026.

For Ghanaian Depositary Shares, where 100 GhDSs represent one ordinary AngloGold Ashanti share, the equivalent estimated gross dividend would be approximately GH¢0.083952 per GhDS, subject to the final exchange rate.

Shareholders Approve $2 Billion Buyback

Shareholders also approved a proposed share repurchase programme of up to $2 billion on July 23, 2026.

The buyback will provide AngloGold Ashanti with another method of returning capital to investors alongside dividends.

The company had earlier repurchased approximately $666 million of outstanding bonds in April, reducing gross debt and future interest costs while partially eliminating debt maturities due in 2028 and 2030.

Obuasi Remains Central to Growth Plans

AngloGold Ashanti said it remains focused on the continued ramp-up of the Obuasi mine in Ghana, alongside growth opportunities in Nevada, Tanzania, Guinea, Egypt and Brazil.

The company has identified potential production and efficiency improvements across Obuasi, Geita, Sukari, Siguiri and Cuiabá. These projects are expected to utilise existing infrastructure to expand production, extend mine lives and reduce unit costs.

Management expects gold production to increase significantly during the second half of 2026. As production volumes rise, unit costs are also expected to decline.

AngloGold Ashanti maintained its full-year 2026 guidance for production, costs and capital expenditure.

Outlook

The results show that AngloGold Ashanti benefited significantly from rising gold prices, which more than offset lower production and higher operating costs.

The company’s stronger cash position, increased dividend, debt reduction and proposed $2 billion share buyback could make the stock more attractive to income and long-term investors.

However, investors should continue monitoring rising production costs, operational performance at Obuasi and whether the expected increase in second-half production is achieved.

Overall, AngloGold Ashanti entered the second half of 2026 with strong profitability, substantial free cash flow and a significantly improved balance sheet.