South African gold mining company Anglogold Ashanti reported that its free cash flow grew seven times, up 607% year-on-year to $403 million in the first quarter of 2025 (Q1 of 2025).

Profits attributed to equity shareholders are nearly eight times.

This financial rise is attributed to effective cost management, higher gold prices and gold production in custodial operations rose 28% year-on-year, largely due to increased production by Egypt’s new Sukari Gold Mine and Siguiri in Guinea and Tropicana in Australia.

Egypt's largest gold mine, Sukari, contributed 117,000 ounces of first-quarter production, and the company's gold production rose 22% to 720,000 ounces.

The company focuses on closing the valuation gap with North American competitors through operational improvements, cash conversions, mine expansion and disciplinary allocations.

"This is a very strong start for the year, especially in our hosting operations," said Alberto Calderon, CEO of Anglogold Ashanti.

“As Sukari increases, we have seen strong production growth, and our cost control efforts continue to offset inflation, which ensures that we capture the benefits of higher gold prices.”

Anglogold Ashanti is also actively managing its portfolio, including divestment of the Archean-Birimian Contact (ABC) projects of Doropo Project and Côted'Ivoire, with a focus on operations and projects in the United States.

The company's new dividend policy is designed to pay 50% of its annual free cash flow and to keep EBITDA's net debt (interest, tax, tax, depreciation and amortization) ratio at one time, with a base dividend of $0.50 per year.

The company's financial position is improving, with adjusted net debt down 60% to $525 million and net debt-to-EBITDA ratio rising to 0.15 times.

Liquidity is about $3 billion, including $1.5 billion in cash and equivalent value.

Capital expenditure (CAPEX) rose 27% in the first quarter to $336 million, including $236 million in maintenance capital and $100 million in growth capital.

The company reiterated its full-year gold production forecast between 2.9 million ounces (MOZ) and 3.225 moz, with a total cash cost per ounce of between $1,125 and $1,225 and a full ongoing fee of between $1,580 and $1,705 per ounce.

Total capital expenditure in 2025 is expected to be between $1.62 billion and $1.77 billion.

“Anglogold Ashanti’s free cash flow increased by 607% in Q1 2025” was originally created and published by global data-owned brand Mining Technology.

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