Global gold mining company AngloGold Ashanti has reported a nine-fold year-on-year increase in free cash flow to $942-million for the financial year ended December 31, while adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 93% year-on-year to $2.75-billion.

CEO Alberto Calderon attributed the increase in free cash flow to the group’s focus on continued operational and efficiency improvements which, in turn, allowed it to “capture the benefit of a healthy gold price”.

The average gold price received per ounce for the group increased by 24% to $2 394/oz in 2024. Compared with $1 930/oz in 2023.

“The key takeaway from our results is our ability, through disciplined costs, to ensure the full benefit of the higher gold price flow straight through to the bottom line,” said Calderon during a presentation of the company’s financial results on February 19.

AngloGold reported headline earnings of $954-million, or $2.21 a share, compared with a headline loss of $46-million, or $0.11 a share, for 2023.

Its adjusted net debt decreased by 55% year-on-year to $567-million.

The gold miner declared a dividend of $0.69 a share – an increase of 263% on the dividend for the 2023 financial year.

“With the business receiving appropriate investment and the balance sheet at its strongest position in well over a decade, we’re able to pass on those benefits to shareholders in a more generous dividend policy,” Calderon said.

AngloGold reported strong performances from several key operations during the year under review, saying this demonstrated improved operational resilience.

The company notes that its Australian mines recovered well from rains and flooding in the first half of the year, while Siguiri, in Guinea, finished the year well after production in the first quarter was impacted on by metallurgical recovery challenges.

A marked operational turnaround of the Brazilian operations also continued to gain momentum following resumption of concentrate processing at the Queiroz plant during the third quarter.

The Obuasi mine, in Ghana, meanwhile, delivered an improved fourth-quarter performance, in line with a revised mine plan, amid improved sublevel open stoping and the continued rollout of the underhand drift and fill method.

Group gold production, including 40 000 oz from the Sukari, in Eqypt, which AngloGold acquired from Centamin in November, was 2.66-million ounces.

Gold production for the year was driven by year-on-year improvements at Cuiabá (AGA Mineração), in Brazil; Cerro Vanguardia, in Argentina; Siguiri; and Sunrise Dam and Tropicana, in Australia, as well as the introduction of Sukari into the portfolio.

The company explains that these increases were partly offset by lower gold production contributions from Iduapriem, in Ghana; the joint venture Kibali mine, in the Democratic Republic of Congo; and Serra Grande, in Brazil.

Following the successful integration of Sukari into AngloGold's portfolio, the group has set its production guidance for this year at between 2.9-million and 3.23-million ounces, and all-in sustaining costs at between $1 580/oz and $1 705/oz.

NEW DIVIDEND POLICY
As a result of improved operational fundamentals, a robust balance sheet and increased confidence in the company’s outlook, the AngloGold board has approved a revised dividend policy aimed at delivering enhanced and sustainable shareholder returns.

Under the new policy, the group will target a 50% payout of free cash flow, where free cash flow is defined as operating cash flow less capital expenditure of managed operations, subject to maintaining an adjusted net debt to adjusted Ebitda ratio of 1.0 times.

Additionally, the revised policy introduces a base dividend of $0.50 a share per year, payable in quarterly increments of $0.125 a share. This base dividend represents the minimum payout, ensuring a stable return to shareholders even through commodity price cycles.

This enhanced policy reflects the company’s commitment to strong capital discipline, financial resilience and delivering long-term value to shareholders, while providing greater predictability and downside protection in varying market conditions.

CFO and executive director Gillian Doran commented that the new policy would continue to keep the health of the assets and the balance sheet in focus, while significantly stepping up the company’s shareholder returns.

“The cornerstone of this policy is our continued ability to generate superior cash flows. The instrument for us to do this remains a combination of operational excellence, the Full Asset Potential Program and active management of working capital," Dorran added.