AnganGold first-half earnings down on rising costs

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AnganGold first-half earnings down on rising costs

JOHANNESBURG Reuters -- AngloGold Ashanti's first-half earnings fell 18%, even as production went up, as inflation took a toll on its profit with the gold miner warning on Friday that costs were scaling towards the top end of its annual forecast range.

The South Africa-based miner's first-half production increased by 3%, compared with the same period last year, putting the miner on track to meet its outlook for 2022.

The headline earnings per share, the main profit measure in South Africa, came in at 71 U.S. cents, down 18% from a year-ago period. Cash costs went up by 6% from the same period last year to $1,068 per ounce.

The company, which mines in Argentina, Australia, Brazil, Democratic Republic of Congo, Ghana, Guinea, and Tanzania, produced 1.233 million ounces of gold in the first half, with second quarter output up 10% from the first quarter due to higher grades.

AngloGold said that the increase in costs was caused by inflation across several input categories and larger royalty payments.

The fundamentals of our company continue to improve despite the challenging cost environment, Chief Executive Officer Alberto Calderon said.

Cash distributions from the Kibali mine in Congo, a joint venture operated by Barrick Gold Corp., came in at $471 million, down from a year ago when net debt fell 13% to $740 million.