AU - AngloGold affirms full-year production guidance after jump in Q2

2023-08-04 10:12:35 ET

AngloGold Ashanti ( NYSE: AU ) reported a sharp drop in H1 profit, due mostly to higher costs and lower production in Brazil, but said it expects to meet its production and cost targets for the full year.

H1 headline earnings, which strips out exceptional and other one-off items, fell to $140M, or $0.33/share, from $300M, or $0.71/share; earlier this week , the company said it expected headline earnings of $125M-$155M.

H1 basic earnings plunged to $40M, or $0.10/share, from $298M, or $0.71/share, a year ago; the company had expected basic earnings of $25M-$54M.

H1 gold production was flat at 1.236M oz, with higher grades helping offset lower ore tonnages processed in Brazil, Tanzania and Guinea; Q2 output rose to 652K oz from 584K oz in Q1.

H1 all-in-sustaining costs rose 12% Y/Y to $1,587/oz from $1,418/oz in the year-ago quarter, mainly due to higher total cash costs and a planned increase in sustaining capital spending.

For the full year, AngloGold ( AU ) said it expects to meet guidance for production of 2.45M-2.61M oz, with output expected to be H2-weighted while unit costs decline into H2.

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