This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record free cash flow generation of $761 million in H1 2026, up 19% from H2 2025.
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Record shareholder returns of $301 million in H1 2026, more than double the minimum commitment.
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Healthy net cash position of $254 million, providing financial flexibility for organic growth and returns.
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Strong operational performance with H1 production of 564,000 ounces, on track to meet full-year guidance.
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Exploration success at Vindaloo Deeps and Kawasara deposits, with significant resource updates expected later in 2026.
Negative Points
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Tragic fatality at the Mana mine in May 2026, highlighting safety concerns.
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Mana mine production expected below guidance range due to lower grades and operational challenges.
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Increased sustaining capital expenditure guidance from $230 million to $280 million due to higher stripping activity.
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Higher all-in sustaining costs in Q2 2026 due to lower production at Sabodala-Masawa and Mana.
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Seasonal tax payments and lower gold prices impacted Q2 2026 free cash flow, which fell to $149 million.
Q & A Highlights
Q: On the capital returns, you are exceeding your minimum commitment, but even at $4,000 gold, free cash flow would far exceed your capital return. What level of cash on the balance sheet gives you all the optionality you need, and what would it take to pay out 100% of free cash flow? A: (Guy Young, CFO) It is not our intention to build cash balances. Our policy remains to supplement returns significantly at higher gold prices, but we need to ensure we can fully fund our organic growth pipeline, like the Assafou project, off our balance sheet. Distributing 100% of free cash flow would be excessive until we have a higher degree of certainty on the total capital bill for Assafou. We are comfortable with our current framework of a minimum commitment with potential doubling depending on the gold price.
Q: On the Assafou project, how confident are you in the initial budget given supply chain dislocations, and how are the mining convention negotiations going? A: (Guy Young, CFO) For the longer lead items procured so far, the tenders and orders are completely in line with the original budget, so we are not seeing any potential inflationary overruns at this stage. (Ian Cockerill, CEO) The mining convention negotiations are going extremely well. The Minister of Mines has given an undertaking that it will be signed under the 2014 mining code, meaning a 10% free carry by the state, not 15%. We expect to finalize this within Q3, which is a key factor for moving to FID by year-end.
Q: On the Sabodala-Massawa operation, what kind of rebounding grades and recovery rates are you expecting in the back half of the year to achieve guidance? A: (Jarria Traore, EVP of Operations) For Q3, production will be fairly stable with a small decline in grade for the CIL plant, offset by higher-grade feed from the Massawa North zone stockpile. For H2 overall, we expect a much stronger performance with better grades from the Nyaakafiri West and Delia South pits. We are also seeing improved recoveries, reaching 84% in June, and we are working to make that level consistent.
Q: On the Mana mine, how should we think about this asset in the medium to longer term given its operational challenges? A: (Ian Cockerill, CEO) The short-term issues are just thatshort-term. The mine has transitioned to a full underground operation, and we have consolidated to one contractor, which is helping. The higher costs are driven by lower production, increased self-generation of power due to state supply issues, and higher royalties in Burkina Faso. The controllable costs are being managed well. Mana has a long resource life and still generates cash at these gold prices. We are not asset huggers, but unless we can realize more value through divestment, we will continue to operate it for cash to reinvest in growth and shareholder returns across the group.
Q: On the fracture identified at the surface above the Wona underground mine at Mana, should we be concerned about disruption to other active areas? A: (Jarria Traore, EVP of Operations) The fracture is a small, localized event in the northern part of the Wona deposit. Mining activities were paused as a precaution, and the area is under close monitoring with a partial reentry expected shortly. The central and southern parts of Wona, as well as the Goa and Gona deposits, remain active. The expected production impact will be completely offset by stronger performance from other assets like Lafigue.
Q: On the exploration front, are there any other targets besides the Vindaloo Deeps and Koussara discoveries that could move the needle? A: (Sonia Scarcelli, EVP of Exploration) Yes, there are many. At Sabodala-Massawa, we have identified over 23 targets. At Ity, we are excited about the "Eastern Border" corridor, a 10km mineralized trend south of the operation. At Lafigue, we are progressing resources around the main pit. At Assafou, we are seeing exciting prospects in the Pala trend. We also have new ventures in Kazakhstan and Guyana.
Q: On the Koussara discovery at Sabodala-Massawa, is it covered by the same mining permit, and what is the timeline to bring it into the mine plan? A: (Sonia Scarcelli, EVP of Exploration) The prospect is currently on an exploration permit. We are working in parallel to complete the environmental work required to move it into the exploitation permit, which will feed into the current mine permit for Sabodala-Massawa. The timeline for this is 2 to 3 years.
Q: On the working capital release in Q2, can you give a steer on what to expect in the second half? A: (Guy Young, CFO) The Q2 inflow was welcome but driven by timing on trade payables and some VAT receipts. We do not expect that level of inflow to be repeated in Q3 and Q4. We will likely see an increase in Burkina Faso VAT balances. Stockpiles will be a swing factor, with drawdowns in Q3 from stripping and potential builds in Q4 from higher production. Overall, working capital outflows for H2 should be relatively well managed and a smaller swing than in historical quarters.
Q: On the M&A front, any comment on the Barrick reports earlier in the quarter, and do you see yourselves operating in other African countries like Tanzania or DRC? A: (Ian Cockerill, CEO) I was surprised by that comment. We do not comment on market speculation. Our growth is biased towards organic opportunities, as demonstrated by our exploration success. We are comfortable operating in our current areas. If we were to do M&A, it would make sense to look at lower-risk areas. We are selling assets in Mali, so it would not make sense to go back there. There is nothing in the pipeline we are actively involved with.
Q: On the cost performance, can you provide a high-level commentary on inflationary pressures and how you are mitigating them? A: (Guy Young, CFO) We are not seeing significant inflationary pressures that would change our guidance. The main elements are fuel and explosives, but these are being offset by site-by-site productivity initiatives. The key cost driver for H
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
