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Miner's profit up 413%, bumps up dividend

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Higher gold price, output boost income

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Company expects stronger second half

(Writes through with CEO's comments on cash flow projections)

By Nelson Banya

Aug 6 (Reuters) - AngloGold Ashanti

expects more than $400 million free cash flow during the second

half of the year on the back of high gold prices and improved

cost performance, CEO Alberto Calderon said on Tuesday.

AngloGold's headline earnings vaulted 413% to $313 million

in the six months to June 30, up from $61 million a year

earlier. Its income was buoyed by firmer metal prices and

improvements in gold production and cost performance, including

a notable turnaround at its Brazil operations .

The miner boosted its first-half dividend payment by 450% to

22 cents per share, from 4 cents per share during the same

period of 2023.

Its free cash flow - a measure of how efficiently a business

generates cash from operations - rebounded to $206 million from

a negative $205 million in the first half of 2023.

"Q3 is off to a good start, teeing up to an even better

second half," Calderon said during an earnings call.

"As we look to the second half, all things being equal and

the gold price staying where it is, we anticipate free cash flow

more than doubling the H1 levels," he added.

The price of the precious metal has risen almost 19% since

the beginning of the year, peaking at $2,483.60 on July 17,

driven by demand from institutional investors, high net-worth

individuals and central bank purchases.

Spot gold was trading at $2,391.99 an ounce at 1425 GMT.

Calderon said the growth in cash flow in the first half had

a bigger impact on AngloGold's earnings than the higher gold

price.

"We've been able to not only keep every penny of the gold

price increase, but to surpass it, thanks to our full asset

potential programme," he said, referring to AngloGold's

three-month assessment of each of its mines, including mine

design, to enhance operational performance.