JOHANNESBURG (miningweekly.com) – In the three months to September 30, the free cash flow of AngloGold Ashanti rose 141% year-on-year to a record $920-million as continued cost discipline helped to capture the benefits of a higher gold price.

A quarterly dividend of $460-million was declared, taking dividends declared this year to $927-million.

Third-quarter group gold production rose 17% compared with the comparable period of last year, with strong contributions made by Obuasi in Ghana, Geita in Tanzania, Cuiabá in Brazil, Kibali in the Democratic Republic of Congo, and the addition of Sukari in Egypt to the portfolio. The average ounce gold price received in the three months increased to $3 490/oz from $2 486/oz in the third quarter of last year.

"This is another record quarter for cash generation and another healthy dividend declaration. 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," AngloGold Ashanti CEO Alberto Calderon stated in Johannesburg Stock Exchange news service announcement covered by Mining Weekly.

The 40% increase in the average gold price translated into a 94% rise in cash generated from operations, reflecting strong price pass-through and cost discipline.

AngloGold Ashanti has advanced from an adjusted net debt position into an adjusted net cash position of $450-million at September 30, ending the third quarter with liquidity of $3.9-billion, including $2.5-billion in cash and cash equivalents.

The interim third-quarter dividend of $0.91 a share includes the minimum quarterly dividend of $63-million or $0.125, with the balance reflecting the decision to pay half of free cash flow generated for the three months to the end of September.

While AngloGold Ashanti's dividend policy commits to this 'true up' payment to 50% of free cash flow annually at year-end, the board used its discretion to make the payment at the quarter owing to the strength of cash flows and its confidence in the outlook for the balance of the year.

On the safety front, a total recordable injury frequency rate of 0.96 injuries per million hours worked was reported.

Third-quarter group gold production increased to 768 000 oz, up from 657 000 oz in the third quarter of 2024, reflecting the contribution from Sukari and improved performances at key assets, including Obuasi (+30%), Kibali (+21%), Geita (+6%), and Cuiabá (+6%).

Managed operations saw gold production up 16% year-on-year to 682 000 oz driven by Sukari's inclusion and the continued ramp-up at Obuasi, which was partially offset by lower output from Australia and Siguiri.

Non-managed joint ventures, namely Kibali, recorded a year-on-year increase in gold production to 86 000 oz owing to higher grades mined.

Production improvements were led by Obuasi, with a growing contribution from underhand drift-and-fill mining and a 23% year-on-year increase in recovered grade.

Sukari posted another strong result, with the third consecutive quarterly production increase. Gold production at Cerro Vanguardia, Iduapriem and Serra Grande remained largely unchanged year-on-year.

The focus on operational discipline and efficiencies was evident once again, with total cash costs flat in real terms. The inflation rate experienced across the business was approximately 5%.

Total group cash costs increased by 5% year-on-year to $1 225/oz and total group capital expenditure rose in line with plan to a 323%-higher $388-million. The increase in sustaining capital expenditure (capex) reflects the first-time inclusion of Sukari ($32-million) and ongoing investment to support asset integrity and long-term operational resilience, in line with strategic priorities.

The company is reinvesting in the growth of its mineral reserve base and enhancing operational flexibility. Over the next three years, targeted spending will be directed towards exploration, mineral reserve development, and the conversion of mineral resource to mineral reserve at sites with high geological potential.

At the Tier 1 Geita gold mine in Tanzania, this investment strategy is already underway, with additional capex already approved this year, and ongoing investment for the next three years is expected to increase the mineral reserve by 60% and to extend life-of-mine to ten years or more at current production rates of about 500 000 oz/y.

In addition, a conceptual study showing potential for a one-million-tonne-a-year mill expansion could underpin an increase in production to 600 000 oz/y for at least a decade. A detailed feasibility study into this project is now underway, and is expected to be completed by 2027.

The Beatty District in Nevada has been further consolidated and the acquisition of Augusta Gold concluded.

Annual guidance for 2025 has been reaffirmed.