AngloGold Ashanti Targets 2026 Guidance Midpoint, Eyes Major Growth Projects

AngloGold Ashanti NYSE: AU expects to meet its production guidance this year despite operational disruptions at several sites, supported by stronger performance across the rest of its global portfolio, Chief Executive Officer and Executive Director Alberto Calderon said during a company presentation.

Calderon said the company expects to produce near the midpoint of its guidance range, with eight other assets helping offset the effects of flooding at Iduapriem and a fatality at Obuasi that led to the closure of the KMS shaft. He said safety remains the company’s highest priority.

“We consistently deliver on what we say we’re going to do,” Calderon said, adding that AngloGold expects to control the costs within its influence while recognizing it cannot control factors such as royalties, oil-price inflation and exchange rates.

Portfolio performance and production outlook

Calderon said the company’s South American mines and the Tropicana operation have performed exceptionally, highlighting the benefits of a broad portfolio of large-scale assets. AngloGold defines Tier 1 assets not only by their production scale, generally at least 300,000 to 350,000 ounces, but also by their cost profile, he said.

About 70% of AngloGold’s production currently comes from Tier 1 assets, which carry margins of roughly 71%, according to Calderon. The company’s Tier 2 assets also continue to perform well, with margins of about 58%. AngloGold aims to have close to 80% of its production from Tier 1 assets by the middle of the next decade, alongside higher overall production.

The company produced close to 1.5 million ounces in the period referenced by Calderon and expects production at the midpoint of 2026 guidance to total approximately 3 million ounces. He said projected cash costs are expected to remain broadly in line with prior levels after accounting for inflation, royalties, oil prices and currency movements.

Capital returns and balance sheet

Calderon said AngloGold’s capital-allocation approach prioritizes capital expenditures from operating cash flow and returns at least 50% of free cash flow, after expenditures, to shareholders. The company returned $660 million through dividends and debt reduction, including debt repurchased in the market, he said.

“Basically, we don’t have any debt for this decade,” Calderon said, adding that the balance sheet should allow AngloGold to fund both the Arthur project in Nevada and the Quebradona copper project in Colombia, including some overlap in their development timelines.

The company has also announced a share buyback, though Calderon said the program has been delayed by approval requirements in South Africa. He said AngloGold expects to pursue the buyback when it is again in an open trading period.

Calderon added that if gold prices remain above $4,000 per ounce, AngloGold will likely return more than 50% of free cash flow to shareholders in some form in February of next year. The company returned approximately 62% of free cash flow during the second half of last year, he said.

Growth projects target higher output

AngloGold plans to provide additional details in November on growth projects at Geita, Cuiabá, Obuasi, Sukari and Siguiri. Calderon said those operations could collectively add between 350,000 ounces and 450,000 ounces of production over the next three years through a gradual ramp-up.

• Geita: Expansion would include plant capacity additions and capital investment.
• Cuiabá: Growth is expected to require relatively limited capital spending, supported by satellite deposits and new ore bodies.
• Siguiri: The project would rely on brownfield exploration and available processing capacity.
• Sukari: Plans include underground mining and a gravity gold project costing about $30 million, which has already been approved.
• Obuasi: AngloGold expects production of about 400,000 ounces in 2028 and plans to access Block 11 around 2029. Calderon said Block 11 has grades of about 17 grams per tonne, compared with current grades of roughly eight to nine grams per tonne.

Nevada and Colombia developments

Calderon described the Arthur Gold project in Nevada’s Beatty District as AngloGold’s largest and most valuable project for the 2030s. The district has a mineral reserve of 4.9 million ounces and approximately 20 million ounces of resources, he said. The company expects to convert another approximately 1 million ounces into reserves during 2026.

Arthur is projected to average about 500,000 ounces of annual production and begin at approximately 800,000 ounces, according to Calderon. AngloGold believes the Arthur and North Bullfrog projects together could sustain annual production of 700,000 to 800,000 ounces for decades after additional exploration and reserve conversion.

Calderon said the company is currently focused on feasibility work, advance ordering and accelerating development rather than expanding the resource base. He cited water management and environmental permitting as key considerations, while saying AngloGold has sufficient water rights and has redesigned North Bullfrog to reduce water use, including through dry stacking.

In Colombia, Calderon said the company sees an improved path toward advancing the Quebradona copper project following discussions with government officials. He said AngloGold and Colombian authorities are seeking to fast-track approvals, potentially within 18 to 24 months, which could allow production to begin toward the end of the decade.

Calderon also said AngloGold has increased its stake in Thesis and is evaluating other opportunities in Canada as part of a strategy to gain exposure to what its exploration team believes could become another major mining district.

About AngloGold Ashanti (NYSE:AU)

AngloGold Ashanti plc NYSE: AU is a global gold mining company engaged in the exploration, development, and production of gold. Its activities include operating mines, processing ore into doré and bullion, and developing mineral resources and reserves. The company also conducts exploration and evaluation activities in areas with potential for additional gold discoveries.

The company has mining operations and projects across several regions, including Africa, Australia, the Americas, and other international markets.

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