JOHANNESBURG, July 31 (Reuters) - AngloGold Ashanti ( AU )

posted a 58% increase in second-quarter profit on Friday, as

higher bullion prices offset the impact of lower output.

The miner said its headline earnings were $1.01 billion in

the three months to June 30, up from $639 million a year

earlier.

AngloGold's second-quarter gold production fell by 7%

year-on-year to 744,000 ounces following the sale of Brazil's

Serra Grande mine in December 2025.

Output was also impacted by a 32% drop in gold production at

the Obuasi mine in Ghana due to operational and equipment

challenges as well as disruptions linked to a fatality in April

2026.

Although its half-yearly output was 3.7% lower year-on-year

at 1.47 million ounces, AngloGold said it expects a stronger

second-half performance to achieve its annual production

forecast for 2026, between 2.8 million and 3.17 million ounces.

A 35% year-on-year increase in the average gold price

received drove a 36% jump in AngloGold's second-quarter free

cash flow to $727 million.

AngloGold said it would pay a quarterly dividend of 72 cents

per share, or $364 million, bringing the total payout in the

first half of the year to $949 million.

The company has also proposed a $2 billion share buyback,

which was approved by shareholders on July 23.