AngloGold Ashanti quadruples its free cash flow

The superlatives continue to roll through the mining sector as more and more companies publish their earnings reports. On Monday, AngloGold Ashanti said its free cash flow increased 290% in the third quarter, totaling $ 339 million. That was almost a quadrupling of free cash flow in the third quarter of 2020, the company said.

When asked what Ashanti will do with its new Windfall, it said it would pay shareholders 20% of its free cash flow before considering investments in growth projects. The company also said it would double the frequency of payouts from the current annual dividend declaration to semi-annual payments. "We will continue to enforce capital and cost discipline to generate strong cash flows in this environment of increased Gold Prices," said Christine Ramon, AngloGold Ashanti's interim chief executive officer, in a statement.

"The doubling of our dividend payout ratio shows our confidence in our ability to both improve direct returns for shareholders and self-finance our growth projects and capital requirements. The UK-based gold producer said adjusted net debt fell to $ 875 million by the end of September 2020, while adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") fell 72% to 803 million over the same period . $ 468 million in the third quarter of 2019. Ashanti said its adjusted net debt had dropped to its lowest level since 2011.

The higher Gold Price not only contributed to Ashanti's bottom line, but the company also reported higher gold production. The company said it produced 837,000 gold in the third quarter, up from 825,000 ounces in the third quarter of 2019. In addition to higher production, Ashanti also reported rising costs, with total maintenance costs increasing to $ 1,044 per ounce in the third quarter of 2020, compared to $ 1,031 / oz in the third quarter of 2019.