Jul 31, 2026 earnings call — Q2 results, strong cash flow and buyback plan
Company announced a $2 billion open market share buyback program and declared $949 million in half-year dividends.
Revenue $3.1B (est $3.2B) · EPS $1.98 (est $2.03)
Key quotes
"Through rigorous operational discipline and our Full Asset Potential program, we have successfully compensated not only for the increase due to these external factors, but also for normal changes in grade and mining further from infrastructure that is inevitable."
"That positions us well to deploy excess liquidity into a $2 billion open market share buyback program. Shareholders approved the program last week, and we're now waiting approval from the South African Reserve Bank."
"We have been -- we have finished a major drilling campaign at Arthur, and we are aiming to increase the reserves by -- our target is 1 million-plus ounces for this year."
Analyst Q&A 5
buyback and asset growth plans
Q (Joshua Wolfson · RBC): He asked how the approved buyback will be executed — opportunistic or steady — and if the company plans to complete the full program. He also asked for more detail on organic growth at Geita, Obuasi, Sukari, Cuiaba and Siguiri, and about capital needs; plus a question on Arthur exploration progress.
A: Management said the buyback will be more opportunistic while they await Reserve Bank authorization. They said most of the identified assets are low-capex growth: Geita needs more processing-plant cost, Sukari needs equipment and trucks, Cuiaba is mostly mining and may add about 75,000 ounces, and Siguiri is brownfield open-pit mining with some resettlement issues; growth CapEx already includes items like $120 million for TSFs and some sustaining spend to prepare projects. They also said Arthur had a major drilling campaign, the Board approved funding, they aim to increase reserves by a target of 1 million-plus ounces this year, and a feasibility study will start in August.
"I can tell you at this stage, it's going to be more opportunistic." — Alberto Calderon
cash returns, Obuasi problems, realized price
Q (Adrian Hammond · SBG): He asked whether the $1 billion cash buffer plan means all future free cash flow will be paid out or if more cash will be kept. He also asked if Obuasi's operational problems are temporary and about the gap in realized gold price and whether working capital outflows will reverse.
A: Management said the plan is to return cash and to build a $1 billion buffer, but returns depend on the gold price and could allow more returns if prices stay elevated. On Obuasi, they said the main issue was a fatality and a catastrophic ore-pass failure that forced closures; they expect to run without the KMS shaft but annualize about 300,000 ounces in H2 and to have a rebuilt ore pass by Q4 to support 2027 targets. On pricing, management said the lower realized price was timing related (Q2 volatility) and that small concentrate sales had minor impact; on working capital they are focused and do not expect lumpiness in H2.
"You will know that there was quite a lot of volatility in gold price change in Q2." — Gillian Doran
buybacks vs dividends and capex per ounce
Q (Raj Ray · BMO): He asked to confirm whether the company can buy back shares above the 50% free-cash-flow dividend policy. He also asked whether expected portfolio growth will change capital intensity (sustaining and nonsustaining capital per ounce).
A: Management confirmed they can repurchase shares in addition to paying 50% of free cash flow as dividends, and said if the gold price stays where it is that will be the case. They said capital intensity should remain stable for some years, currently around $480 per ounce, and they expect to stay at that level while investing in a meaningful organic growth pipeline.
"And if the gold price stays where it is today, it will be -- that will be the case." — Alberto Calderon
Siguiri refinery rule and Iduapriem costs
Q (Joseph Reagor · ROTH Capital Partners): He asked whether the government requirement to route gold through a local refinery has affected Siguiri and what impact it will have. He also asked why Iduapriem cash costs rose quarter-over-quarter and whether that is persistent.
A: Management said they are in conversations with the government about the Siguiri refinery requirement, believe they will find a way to address it within business as usual, and expect constructive talks given the Minister's industry knowledge. On Iduapriem, they said the main driver of the quarter cost increase was an increase in royalty; flex costs including royalties and fuel were broadly flat and the government reduced the COVID levy so there is some mitigation below the line, while mining contractor costs rose but the bulk of the quarter impact was the royalty increase.
"So yes, we are in conversations with the government." — Alberto Calderon
growth capex, inflation and Tier 2 assets
Q (Tanya Jakusconek · Scotiabank): She asked whether the 300,000–450,000 ounce growth will come at less than $100 million and not change the $480/oz sustaining capital, and she asked about inflationary pressure on inputs like labor and consumables. She also asked why the company keeps Tier 2 assets instead of selling them.
A: Management said they never discussed a $100 million total figure and will provide more detail in Q3; sustaining CapEx is not expected to increase and most projects are low-capex, high-IRR and largely "more mining" rather than large expansions (Alberto noted 75,000 ounces additional in Cuiaba). On inflation, they said half-on-half inflation was about 5.8% excluding fuel, fuel added about $20 an ounce, and other impacts cited were $60 for inflation, $23 for fuel, $46 for exchange rate and a significant royalty impact; Gillian said they are not seeing out-of-the-ordinary labor inflation and expect strong cost performance in H2. On Tier 2 assets, management said many are producing strong free cash flow (example CVSA life extended and good cash), sales offers are unattractive at current prices, and they are happy to keep most Tier 2 assets while some can convert to Tier 1.
"Maybe, Tanya, I can just say that we're not seeing anything out of the ordinary in terms of inflationary pressure within the jurisdictions that we operate, particularly around labor." — Gillian Doran