South African gold mining company AngloGold Ashanti has reported a sevenfold increase in its free cash flow, soaring by 607% year-on-year to $403m in the first quarter of 2025 (Q1 2025).
The profits attributable to equity shareholders rose almost eightfold.
This financial uptick is attributed to effective cost management, a stronger gold price and a 28% year-on-year increase in gold production from managed operations, largely due to the new Sukari gold mine in Egypt and improved outputs at Siguiri in Guinea and Tropicana in Australia.
Sukari, Egypt’s largest gold mine, contributed 117,000oz to the first quarter production, driving a 22% increase in gold production for the company to 720,000oz.
The company is focused on closing the valuation gap with North American competitors through operational improvements, cash conversion enhancement, life-of-mine extension and disciplined capital allocation.
AngloGold Ashanti CEO Alberto Calderon said: “This is a very strong start to the year, particularly at our managed operations.
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By GlobalData“We have 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 is also actively managing its portfolio, including the divestment of the Doropo Project and the Archean-Birimian Contact (ABC) projects in Côte d’Ivoire, and concentrating on operations and projects in the US.
The company’s new dividend policy aims for a 50% payout of annual free cash flow, maintaining a net debt to EBITDA (earnings before interest, taxes, depreciation and amortisation) ratio of one times, with a base dividend of $0.50 per share annually.
The company’s financial health is improving, with adjusted net debt dropping 60% to $525m and the net debt to EBITDA ratio improving to 0.15x.
Liquidity stands at around $3bn, including $1.5bn in cash and equivalents.
Q1 capital expenditure (capex) rose by 27% to $336m, which included $236m in sustaining capital and $100m in growth capital.
The company reaffirmed its full-year gold production forecast of between 2.9 million ounces (moz) and 3.225moz, with total cash costs per ounce expected to range from $1,125 to $1,225 and all-in sustaining costs per ounce between $1,580 and $1,705.
Total capex for 2025 is projected to be between $1.62bn and $1.77bn.
