AngloGold to double dividend pay ration after cash flow boost

Business

Johannesburg – AngloGold Ashanti’s share price leapt by more than 10% on the JSE yesterday after the gold mining company said it would double its dividend payment ratio, boosted by a 290% increase in free cash flow to $339-milliom (R5.5billion) for the third quarter to end September, up from $87million compared to the same quarter last year.

The share closed 10.52% higher on the JSE yesterday at R507.62.

The company said it would say its shareholders 20% of its free cash flow before accounting for capital expenditure in growth projects, up from 10% previously.

It would also double the frequency of payout from the current annual dividend declaration to semi-annual payments.

The increase of the free cash flow was boosted by lower costs from continuing operations, lower capital expenditure and a 30% higher gold price received.

The gold price received from continuing and discontinued operations during the quarter was $1904 an ounce compared to last year’s $1464 an ounce.

The group added that the Covid-19 related impact resulted in AISC being $51 an ounce higher in the third quarter due to $22m costs incurred and 18 000 ounces lost production at the South African operations.

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