AngloGold gains on record quarterly cash generation

AngloGold Ashanti (NYSE: AU) opened higher on Tuesday after reporting a significant increase in third-quarter production and record cash generated over the three-month period.During the three months ended Sept. 30, 2025, AngloGold’s consolidated production reached 768,000 oz., up 17% from the same period in 2024. Gold output from its managed operations saw a similar rise, with a 16% jump to 682,000 oz.This production growth, the company said, reflects the contribution from the Sukari mine, acquired through its $2.5 billion takeover of Centamin a year ago, as well as improved performances across its key assets. Of those, the biggest driver was the Obuasi mine in Ghana, with a 23% year-on-year increase in recovered grade.Accordingly, AngloGold has reaffirmed its 2025 guidance of between 2.9 million and 3.225 million oz. of production.Record cash generationIn addition to higher production, the Johannesburg-headquartered miner also benefited from rising gold prices during the quarter, with an average realized price of $3,490/oz., versus $2,486/oz. a year ago. As a result, it was able to generate about $2.37 billion in revenue from its gold production and a nearly three-fold increase in profit from last year.Of note, it generated a record free cash flow of $920 million for Q3 2025, a 141% increase over last year. This allowed the group to end the quarter with liquidity of $3.9 billion, including $2.5 billion in cash and equivalents.With these results, AngloGold has declared an interim dividend of $0.91 per share, which includes the minimum quarterly dividend of $0.125, with the balance reflecting management’s decision to pay half of the cash flow ($460 million) generated during the three-month period. For the second quarter, it had declared an interim dividend of $0.80.“This is another record quarter for cash generation and another healthy dividend declaration,” AngloGold’s CEO Alberto Calderon stated in the Q3 results release. “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.”Earnings missWhile AngloGold’s operational results were in line with analyst expectations, the financials were a slight miss. Its Q3 2025 revenue was about $160 million below the consensus, and its headline earnings, while doubled from $0.56 to $1.32 per share from last year, were also below expectations.According to BMO Capital Markets, the earnings miss was mostly due to environmental rehabilitation and finance activities, which led to a 5% year-on-year increase in Q3 cash costs.Still, investor reaction to the Q3 results were mostly positive, as shares of AngloGold rose over 5% during the early morning trading to a near 52-week high of $78.10, with a market capitalization of $39.2 billion.The record cash flow, which was more than $200 million above consensus, was due to positive working capital movement ($106 million) and lower capital expenditure and cash taxes paid, BMO highlighted in its note.Reinvestment strategyIn its Q3 results, AngloGold also emphasized its strategy to reinvest in its portfolio in order to bolster its reserves. A key part of this strategy is the Geita mine in Tanzania, where ongoing investment for the next three years is expected to increase the gold reserve by approximately 60% and to extend the life of mine to 10 years.A feasibility study is currently underway to evaluate the potential for a 1-million-tonner-per-annum mill expansion that could underpin an increase in production to about 600,000 oz. a year for at least a decade.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com