AngloGold cash up 607%, earnings up 671%, gold output up 22%, costs up only 1%

AngloGold Ashanti first-quarter presentation covered by Mining Weekly's Martin Creamer. Video: Darlene Creamer.

• 9th May 2025
• By: Martin Creamer
• Creamer Media Editor

JOHANNESBURG (miningweekly.com) – In the first quarter (Q1) of this year, gold mining company AngloGold Ashanti has reported a sevenfold increase in free cash flow and an almost eightfold rise in profit attributable to equity shareholders compared with the corresponding period of last year, underpinned by higher gold production, while there was a smidgen in cost rise, amid an average gold price received per ounce increasing to $2 874/oz from $2 063/oz in Q1 2024.

Free cash flow was up by a stunning 607% to $403-million on 22% more gold production and the cost rise was a mere 1%. (Also watch attached Creamer Media video.)

Managed operations delivered an even higher 28% increase year-on-year, primarily driven by the first-time contribution from the recently acquired Sukari gold mine in Egypt and solid output improvements at Siguiri in Guinea and Tropicana in Australia.

"This is a very strong start to the year, particularly at our managed operations,” AngloGold CEO Alberto Calderon remarked during Friday's presentation of results covered by Mining Weekly.

“We’ve seen strong growth in production with the addition of Sukari and our cost control efforts continue to offset inflation, which has ensured that we capture the benefit of the higher gold price.”

AngloGold Ashanti remains committed to closing the valuation gap with its North American peers by driving continuous improvements in operating performance, enhancing cash conversion, extending life-of-mine, and maintaining a disciplined approach to capital allocation.

QUARTERLY DIVIDEND IN LINE WITH NEW POLICY

Under its new dividend policy, AngloGold Ashanti will target a 50% payout of annual free cash flow, subject to maintaining an adjusted net debt to adjusted Ebitda ratio of 1.0 times.

The new dividend policy also introduced a base dividend of $0.50 a share a year, payable in quarterly instalments of $0.125 a share.

When required, a true-up payment in Q4 of each year will top up the annual base dividend of $0.50 a share to reach the 50% annual free cash flow target. The base dividend establishes a minimum return, ensuring consistent shareholder payouts throughout commodity price cycles. An interim dividend of $63-million, or $0.125 a share, was declared for Q1 2025.

QUARTERLY DIVIDEND IN LINE WITH NEW POLICY

Under its new dividend policy, AngloGold Ashanti will target a 50% payout of annual free cash flow, subject to maintaining an adjusted net debt to adjusted Ebitda ratio of 1.0 times.

The new dividend policy also introduced a base dividend of $0.50 a share a year, payable in quarterly instalments of $0.125 a share.

When required, a true-up payment in Q4 of each year will top up the annual base dividend of $0.50 a share to reach the 50% annual free cash flow target. The base dividend establishes a minimum return, ensuring consistent shareholder payouts throughout commodity price cycles. An interim dividend of $63-million, or $0.125 a share, was declared for Q1 2025.