AngloGold Cashes In On Gold Rally, Production Up 17%
AngloGold Ashanti (NYSE:AU) shares rose Tuesday after the company reported third-quarter fiscal 2025 results.
Details
The company reported revenue of $2.37 billion, which missed the consensus of $2.42 billion.
Meanwhile, adjusted EPS of $1.32 beat the consensus of $1.21.
Adjusted EBITDA more than doubled to $1.6 billion, from $746 million in the prior year quarter.
Production Update
Gold production increased 17% year over year, led by strong output from Obuasi (+30%), Kibali (+21%), Geita (+6%), Cuiabá (+6%), and the newly added Sukari (Egypt) projects.
Managed operations produced 682,000 oz of gold in the quarter, up 16% year-over-year (Y/Y), aided by Sukari and Obuasi ramp-up.
Meanwhile, output from non-managed joint ventures, namely Kibali, increased to 86,000 oz from 71,000 oz, driven primarily by higher grades.
The average gold price per ounce rose to $3,490 in the quarter from $2,486 in the prior year quarter.
The 40% Y/Y rise in the average gold price per ounce drove a 94% increase in cash from operations.
Total cash costs rose 5% Y/Y to $1,225/oz, aided by efficiencies from the Full Asset Potential program, operational improvements, and Sukari.
All-in sustaining costs (AISC) increased 6% Y/Y to $1,720/oz in the quarter.
Dividend & Cash Flow
Operating cash flow rose 134% Y/Y to $1.4 billion, further boosting free cash flow, which grew to $920 million from $381 million a year earlier.
Total capital expenditure increased 32% Y/Y to $388 million.
Sustaining capex upped 24% Y/Y to $281 million on Sukari’s first-time inclusion ($32 million) and ongoing investments to maintain asset integrity and long-term operational resilience.
AngloGold Ashanti declared a third-quarter interim dividend of 91 cents per share, comprising the minimum quarterly dividend of 12.5 cents per share and half of the free cash flow generated in the quarter.
Outlook
The company reiterated its 2025 outlook for gold production of 2,900 – 3,225 koz, all-in sustaining costs of $1,580 – $1,705/oz, cash cost of $1,125 – $1,225/oz, and capital expenditure of $1,620 million – $1,770 million.
For 2026, the company sees gold production of 2,900 – 3,225 koz, all-in sustaining costs of $1,580 – $1,705/oz, cash cost of $1,125 – $1,225/oz, and capital expenditure of $1,710 million – $1,860 million.
Price Action: AU shares were trading higher by 2.28% to $75.78 premarket at last check Tuesday.
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