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AngloGold Ashanti, one of the world’s leading gold producers, delivered a robust financial and operational performance in the three months ended September 30, recording a 141% year-on-year surge in free cash flow (FCF) to a record $920-million. This massive increase was attributed to continued cost discipline, which allowed the company to fully capture the benefits of a significantly higher average realised gold price of $3,490/oz, up 40% from the comparable period last year.
Reflecting the strength of its balance sheet and cash flows, the board declared a quarterly dividend of $460-million, representing a policy-based payout of half the FCF generated for the quarter. This discretionary early ‘true up’ payment brought total dividends declared for the year to date to $927-million. Furthermore, the company successfully transitioned from an adjusted net debt position to an adjusted net cash position of $450-million, concluding the third quarter with a substantial liquidity pool of $3.9-billion, which includes $2.5-billion in cash and cash equivalents.
Group gold production climbed 17% year-on-year to 768,000 ounces, up from 657,000 ounces in the third quarter of 2024. Key assets making strong contributions included Obuasi in Ghana, which grew production by 30%, Kibali in the Democratic Republic of Congo (+21%), Geita in Tanzania (+6%), and Cuiabá in Brazil (+6%). The quarter also benefited from the inclusion of the Sukari operation in Egypt to the portfolio, which posted its third consecutive quarterly production increase.
“This is another record quarter for cash generation and another healthy dividend declaration,” said AngloGold Ashanti CEO, Alberto Calderon, in a Johannesburg Stock Exchange news service announcement. “Cash costs again stayed flat in real terms, which means we can capture these stronger margins and show capital discipline by passing the benefit on to shareholders.” The 40% increase in the average gold price translated directly into a 94% rise in cash generated from operations, underscoring the success of the company’s strong price pass-through and disciplined cost management, with the overall business experiencing an inflation rate of approximately 5%.
Despite inflationary pressures, the focus on operational efficiency ensured total group cash costs rose by only 5% year-on-year to $1,225/oz, remaining flat in real terms. Total group capital expenditure (capex) increased substantially in line with plan to $388-million, a 323% increase, which reflects both the first-time inclusion of Sukari’s sustaining capex ($32-million) and ongoing strategic investment aimed at supporting asset integrity and long-term operational resilience.
Looking ahead, AngloGold Ashanti is actively reinvesting in the growth of its mineral reserve base. Targeted spending over the next three years will be directed towards exploration and the conversion of mineral resource to mineral reserve at sites with high geological potential. At the Tier 1 Geita mine in Tanzania, this strategy is expected to increase the mineral reserve by 60% and extend the life-of-mine to ten years or more at current production rates of around 500,000 oz/y. The company is also currently undertaking a detailed feasibility study—expected to be completed by 2027—into a conceptual one-million-tonne-a-year mill expansion, which could potentially underpin an increase in Geita’s production to 600,000 oz/y for at least a decade. Annual guidance for 2025 has been reaffirmed, while the company has also consolidated its position in the Beatty District in Nevada following the acquisition of Augusta Gold.
