AU

Business Context and Reporting Period

Company: AngloGold Ashanti PLC
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Six months ended 30 June 2025
Key Context: The period includes the full impact of the Centamin acquisition (completed 22 November 2024), adding the Sukari mine in Egypt to the portfolio. The company reported significant growth in revenue and profit driven by higher gold prices and increased production volumes, despite operational challenges at specific sites.

Key Financial Metrics

Operational Metrics (Managed Operations):

• Gold Produced: 1,386,000 oz (vs. 1,096,000 oz in 2024)
• Gold Sold: 1,403,000 oz (vs. 1,133,000 oz in 2024)
• Average Gold Price Received: $3,090/oz (vs. $2,197/oz in 2024)
• All-in Sustaining Costs (AISC): $1,676/oz (vs. $1,658/oz in 2024)
• Total Cash Costs: $1,228/oz (vs. $1,200/oz in 2024)

Material Changes vs. Prior Period

Revenue and Profit Growth: Revenue increased by 73% ($1,856 million) and Profit Before Taxation increased by 206% ($1,195 million). This surge was primarily driven by a 41% increase in the average gold price received and a 24% increase in gold sold volumes.

Cost Dynamics:

• Cost of Sales: Increased 35% to $2,372 million, driven by higher operating costs, royalties, and amortization (up 70% due to the Sukari acquisition and higher stripping costs).
• Royalties: Increased 72% to $186 million, reflecting higher gold prices and increased sales volumes.
• Amortization: Tangible asset amortization rose 78% to $510 million.

Operational Highlights:

• Africa: Managed operations production rose 48% to 879,000 oz, largely due to the inclusion of Sukari (246,000 oz) and growth at Geita (+11%) and Siguiri (+29%). However, Iduapriem production fell 30% due to a 17-day plant shutdown for tailings storage facility repairs.
• Americas: Production decreased 4% to 246,000 oz, impacted by a 38% drop at Serra Grande (now held for sale) and lower recoveries at Cuiabá.
• Non-Managed Joint Ventures: Kibali production decreased 13% to 138,000 oz due to lower recovered grades and operational challenges.

Guidance, Outlook, Risks, and Unusual Items

Capital Expenditure: Total capital expenditure increased 33% to $653 million. Sustaining capex rose 26% (driven by Sukari and Geita), while non-sustaining capex increased 62% (driven by Sukari and Beposo TSF investments).

Dividends:

• Dividends paid increased significantly to $639 million (vs. $80 million in 2024), including $229 million to non-controlling interests (Centamin).
• On 1 August 2025, an interim dividend of 80 US cents per share ($406 million) was declared for the three months ended 30 June 2025.

Strategic Transactions:

• Serra Grande Sale: Agreed to sell the Serra Grande mine to Aura Minerals for $76 million cash plus deferred consideration. A $74 million impairment reversal was recorded.
• Project Sales: Completed sale of Doropo and ABC projects in Côte d'Ivoire for $162 million total consideration, resulting in a $47 million loss on disposal.
• Acquisitions: Proposed acquisition of Augusta Gold Corp. (Nevada assets) for approx. $111 million.
• Divestment: Fully divested interest in G2 Goldfields Inc. for $70 million cash proceeds.

Risks and Contingencies:

• Regulatory: The Quebradona project in Colombia faces a 3-year mining activity restriction due to a new natural resources reserve zone declaration.
• Legal: Ongoing arbitration with Altius Royalty Corporation regarding royalty scope in Nevada; no liability estimate can be made.
• Tax: Brazil Tax Authority challenges regarding tax returns from 2005-2016 with a collective contingent liability of $53 million.
• Operational: VAT lock-ups in Tanzania and Argentina continue to impact working capital movements.

Investor Verification Checklist

• Sukari Integration: Verify the sustainability of Sukari's production levels and cost profile ($750/oz cash cost) as it becomes a larger portion of the portfolio.
• Iduapriem Recovery: Monitor the timeline for full production recovery at Iduapriem following the tailings storage facility shutdown and associated cost increases.
• Gold Price Sensitivity: Assess the impact of potential gold price volatility on future royalty payments and profitability, given the high correlation observed in this period.
• Transaction Closing: Confirm the closing conditions and timelines for the Serra Grande sale, Augusta Gold acquisition, and Mansala Project acquisition.
• Working Capital: Review the status of VAT recoveries in Tanzania and export duty receivables in Argentina, which remain significant non-cash working capital items.
• Cost Inflation: Evaluate the trajectory of Total Cash Costs and AISC, which rose slightly year-over-year despite volume growth, driven by higher royalties and operating expenses.