AngloGold Ashanti has reported a 14 per cent increase in third-quarter profit to $927mn, supported by higher gold prices that helped offset declining production, rising operating costs and increased investment across its global mining portfolio.
The gold producer said in its financial results released on Thursday, November 5, that earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12 per cent to $1.57bn in the three months to September 30, compared with $1.4bn a year earlier.
The increase came as the average gold price received by the company climbed to $4,239 an ounce, up from $3,490 in the corresponding period of 2025, strengthening profitability despite weaker output at several major operations.
Quarterly gold production declined 9 per cent to 696,000 ounces from 768,000 ounces a year earlier, reflecting planned mining activities and operational disruptions at mines in Ghana, Egypt and elsewhere.
The company nevertheless reaffirmed its full-year production guidance of between 2.8mn and 3.17mn ounces, signalling confidence that improved performance in the final quarter would help offset earlier setbacks.
“Our Q3 2026 performance highlights AngloGold Ashanti’s structural quality and free cash flow generation,” said Alberto Calderon, chief executive. “We remain focused on operational predictability, balance sheet resilience, and delivering on our commitments.”
Higher gold prices support earnings
AngloGold Ashanti’s quarterly gold income increased to $2.56bn from $2.37bn a year earlier, while gross profit rose to $1.3bn from $1.19bn.
Profit attributable to shareholders climbed to $787mn from $669mn, an increase of approximately 18 per cent.
However, the improvement in earnings contrasted with a decline in quarterly free cash flow, which fell to $722mn from $920mn in the previous year.
The company attributed the reduction to higher tax payments, lower gold sales, increased working capital requirements and spending on mine development projects.
Capital expenditure across the group rose 45 per cent to $563mn, compared with $388mn a year earlier, as AngloGold Ashanti accelerated investments in mine extensions, equipment upgrades and new development projects.
Net cash tax payments increased to $174mn from $75mn, reflecting higher profitability.
Despite these pressures, the company’s balance sheet strengthened considerably.
AngloGold Ashanti ended September with net cash of $1.26bn, compared with $231mn a year earlier, while total liquidity stood at approximately $4.5bn.
The stronger financial position has allowed the company to continue investing in new projects while increasing distributions to shareholders.
Its board declared an interim dividend of $361mn, equivalent to 71 US cents per share, bringing total dividends declared during the first nine months of 2026 to $1.31bn.
African mines face operational challenges
Production performance across AngloGold Ashanti’s African operations was mixed during the quarter, highlighting the operational challenges facing some of the continent’s largest gold mines.
At the Iduapriem mine in Ghana, production fell 43 per cent year on year after flooding from a neighbouring mining operation restricted access to higher-grade ore.
The company said dewatering activities had restored full access to the affected mining areas, positioning the operation for improved production in the final quarter.
Output at Obuasi, also in Ghana, declined 26 per cent following operational disruptions associated with a fatal accident earlier in the year.
AngloGold Ashanti said underground mining areas were returning to their planned production levels as operations recovered.
In Egypt, production at the Sukari mine fell 21 per cent as the company carried out waste-stripping activities designed to improve access to higher-grade ore.
The mine also recorded a fatal underground rockfall accident in August, prompting an immediate suspension of operations and a review of safety procedures.
The company said operations had since resumed following investigations conducted alongside relevant authorities.
Elsewhere in Africa, production at Tanzania’s Geita mine declined 4 per cent, while Guinea’s Siguiri operation delivered a 49 per cent increase, making it one of the strongest performers in the company’s portfolio.
The mixed results underline the importance of operational recovery at key African mines as AngloGold Ashanti seeks to maintain production levels and capitalise on elevated gold prices.
Rising costs squeeze mining margins
Higher gold prices have provided substantial financial benefits to producers, but AngloGold Ashanti’s results also demonstrated the growing cost pressures affecting the mining industry.
Total cash costs increased to $1,534 per ounce in the third quarter, compared with $1,225 a year earlier.
All-in sustaining costs, a widely used industry measure incorporating operating expenditure and the capital required to maintain production, climbed to $2,170 per ounce from $1,720.
The company said external market factors accounted for approximately 61 per cent of the year-on-year increase in quarterly cash costs.
These included higher royalties linked to rising gold prices and increased fuel expenses stemming from global crude oil price movements.
For the first nine months of 2026, the average gold price received reached $4,518 per ounce, compared with $3,222 in the corresponding period last year.
The higher realised prices increased royalty costs by approximately $81 per ounce, while energy-related pressures added a further $33 per ounce to the cost base.
The figures illustrate a central challenge for gold producers: although rising bullion prices can significantly improve revenues, they also increase certain production-related expenses, particularly in jurisdictions where government royalties are tied to commodity prices.
$900mn African and Brazilian expansion programme
AngloGold Ashanti is preparing a new phase of investment aimed at expanding production at existing mines and extending the operating lives of several major assets.
The company has identified expansion opportunities at Geita in Tanzania, Siguiri in Guinea and Cuiabá in Brazil, alongside the continuing production ramp-up at Obuasi in Ghana.
Combined capital expenditure for the Geita, Siguiri and Cuiabá growth projects is estimated at between $750mn and $900mn over three years.
The investments are expected to generate an additional 300,000 to 450,000 ounces of annual gold production by the end of the decade, measured against the company’s 2025 production base.
The strategy prioritises expanding existing operations rather than relying exclusively on new mining developments, allowing the company to use established infrastructure and potentially reduce project execution risks.
AngloGold Ashanti is also advancing its North Bullfrog and Arthur Gold projects in Nevada, in the United States, as part of a broader effort to develop another major production centre.
On November 3, its board approved funding for the execution phase of North Bullfrog, subject to federal and state regulatory approvals.
“We have world-class, Tier One growth advancing in Nevada, and near-term upside within our existing operations,” Calderon said.
“These are high-return, capital efficient projects at our operating mines that are expected to provide high-margin ounces and unlock further value from our portfolio.”
Strong final quarter critical to annual targets
AngloGold Ashanti produced 2.16mn ounces of gold during the first nine months of 2026, compared with 2.29mn ounces in the same period last year.
The company will need to produce approximately 636,000 to 1.01mn ounces in the final quarter to meet its full-year guidance range.
Management expects the restoration of higher-grade mining areas at Iduapriem, improved underground production at Obuasi and planned mining progress at Sukari to support a stronger finish to the year.
For the first nine months, EBITDA increased to $5.83bn from $3.75bn, while free cash flow rose to $2.62bn from $1.86bn.
The results leave AngloGold Ashanti with significant financial resources to pursue expansion projects and shareholder distributions.
However, the combination of declining production, rising costs and operational safety challenges demonstrates that higher gold prices alone cannot guarantee sustained improvements in mining performance.
For AngloGold Ashanti, the immediate priority will be converting its strengthened financial position into higher production, more predictable operations and long-term returns from its African and international assets.
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