AngloGold Ashanti half-year earnings rise more than 200% on higher gold prices

AngloGold Ashanti on Friday reported a more than 200% increase in first-half earnings, boosted by higher gold prices, weaker local currencies and cost cutting measures. The gold miner said headline earnings per share, the main profit measure used in South Africa, for the six months ended on June 30 rose to 97 cents, or 234%, compared to 29 cents a year earlier.

AngloGold Ashanti on Friday reported a more than 200% increase in first-half earnings, boosted by higher gold prices, weaker local currencies, and cost-cutting measures.

The gold miner said headline earnings per share, the main profit measure used in South Africa, for the six months ended on June 30 rose to 97 cents, or 234%, compared to 29 cents a year earlier. The higher gold price increased 26% year-on-year during the period, AngloGold said, boosting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) 59% to $1.096 billion compared to $689 million in the year-ago period.

Chief executive officer of AngloGold Ashanti Kelvin Dushnisky, who is stepping down from the helm in September, said tight cost and capital management will be key focus areas as the company looks to widen margins and increase reserves. "The business is in excellent shape - cash flows are extremely robust, demonstrating the significant operating leverage we have to this strong gold price," Dushnisky said.

The company said it was investing in the redevelopment of its Obuasi Gold Mine in Ghana, exploration, and ore reserve development to increase reserves and flexibility. The bullion miner, which is in the process of completing the sale of its last South African assets, said it had lost around 85,000 ounces of output due to COVID-19 with 63,000 ounces of that from South Africa.

Mponeng, the world's deepest mine operating mine, suspended operations in May after a total of 196 people tested positive for the new coronavirus. Production during the period was 1.469 million ounces compared to 1.554 million ounces for the first six months of last year.