Shares of Anglogold Ashanti (AU) tumbled 5.54% in pre-market trading on Friday as investors reacted to the company’s second-quarter results, which featured a headline earnings miss, a year-over-year drop in gold production, and rising costs.

The gold miner posted Q2 headline earnings per share of $1.98, well below the FactSet consensus estimate of $2.38. Group gold production fell to 744,000 ounces from 804,000 ounces a year earlier, while total cash costs rose 11.7% to $1.1 billion and all-in sustaining costs increased 15.1% to $1.54 billion. The company cited inflation, higher royalties, increased fuel prices, and foreign exchange headwinds as key drivers of the cost pressures.

Despite the weak operational quarter, Anglogold Ashanti reaffirmed its full-year guidance, noting that production is expected to be significantly weighted toward the second half of the year and that unit costs should trend lower as volumes increase. The company also approved a $2 billion share repurchase program and declared an interim dividend, but these positive announcements were not enough to offset the near-term disappointment.