AngloGold Ashanti has reported a sevenfold increase in free cash flow and an almost eightfold rise in profit attributable to equity shareholders in the first quarter of 2025 compared to quarter one 2024.
This is underpinned by higher gold production, effective cost management, and a stronger gold price.
The company generated $403m in free cash flow in quarter one 2025, representing a 607% year-on-year increase from $57m during the same period in 2024. This performance was supported by a 28% rise in gold production from managed operations, primarily driven by the first-time contribution from the recently acquired Sukari Gold Mine in Egypt and solid output improvements at both Siguiri and Tropicana.
The average gold price received per ounce increased to $2,874 in quarter one 2025, up from $2,063 in quarter one 2024.
“This is a very strong start to the year, particularly at our managed operations,” said Chief Executive Officer, Alberto Calderon.
“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”, he added.
The mining giant stated that it 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.
The company continues to actively manage its portfolio, with the sale earlier this week of the Doropo and ABC Projects in Ivory Coast as it seeks to sharpen focus on its existing operations and projects in the United States.
Quarterly Dividend
The firm pointed out that under its new dividend policy, it 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 per share per annum, payable in quarterly instalments of $0.125 per share.
When required, a true-up payment in quarter 4 of each year will top up the annual base dividend of $0.50 per share to reach the 50% annual free cash flow target.
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