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    AU
    Earnings call· Sep 2025(Q3 FY25)

    AngloGold Ashanti PLC AU

    Nov 11, 2025 Source

    Executive summary

    AngloGold Ashanti Q3 FY25 — Record Free Cash Flow and Strong Operational Performance

    AngloGold Ashanti delivered an excellent quarter, marked by record free cash flow and a strengthened balance sheet, driven by robust operational performance and disciplined cost management. The company is focused on organic growth opportunities within its core assets, particularly Geita and the Nevada project, while maintaining a shareholder-focused capital allocation framework. Management expects to meet its full-year guidance across all metrics.

    Highlights

    5

    • Free cash flow reached a record $920 million in Q3, more than doubling year-on-year.

    • Adjusted net cash position improved to $450 million, the strongest balance sheet ever.

    • Production increased 17% year-on-year to 768,000 ounces, driven by key assets.

    • Total cash costs for managed operations were up only 3% year-to-date, despite 9% macro factors.

    • Adjusted EBITDA grew 109% year-on-year to $1.6 billion.

    Concerns

    3

    • Lower tonnes and grades at Eagle, temporary plant stoppage at Siguiri, and lower underground tonnes and grade at Sunrise partially offset strong production.

    • Market-driven factors (inflation, royalties, fuel, FX) added $100/ounce or 9% to cash costs.

    • Planned stoppage at Siguiri added around $58/ounce to cash cost as a one-off.

    Guidance & targets

    12
    CategoryTargetConfidence
    Total cash cost for managed operations
    up only 3%
    medium materiality
    High
    Full-year 2025 guidance
    within guidance range
    high materiality
    High
    Geita reserve growth
    4 million ounces
    medium materiality
    High
    Geita reserve growth
    5 million ounces
    medium materiality
    High
    Geita production
    600,000 ounces
    medium materiality
    Medium
    Nevada Arthur complex PFS results
    talk about the results
    high materiality
    High
    Nevada Arthur complex production
    800,000-plus ounces per year
    high materiality
    Medium
    Full-year 2025 guidance
    on track to meet in all metrics
    high materiality
    High
    Siguiri production
    up 8% versus 2024
    low materiality
    High
    Capital allocation review
    reassess things
    high materiality
    High
    Cerro Vanguardia asset sale
    concluded
    low materiality
    Medium
    Siguiri plant operating speed
    full speed again
    low materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Obuasi
    Obuasi delivered another steady on-plan performance in Q3, with ongoing improvements in recoveries and treated, supported by investments in ventilation and better equipment availability.
    Ounces increase: 30%Performance: steady on-planImprovements: recoveries and treatedSupport: investments in ventilation, better equipment availability
    		—30%——
    Geita
    Geita contributed to higher production in Q3. It currently produces around 500,000 ounces per year, underpinned by 3.5 million ounces in reserves and 7 million ounces in resources. A conceptual mill expansion aims to increase production by 20% to 600,000 ounces.
    Current production: 500,000 ounces per yearCurrent reserves: 3.5 million ouncesCurrent resources: 7 million ouncesTarget production: 600,000 ounces (up 20%)
    		————
    Siguiri
    Siguiri experienced a temporary plant stoppage in Q3, which added $58/ounce to cash costs. Despite this, full-year 2025 production is expected to be up 8% versus 2024.
    Plant status: temporary stoppage in Q3FY25 production outlook: up 8% vs 2024
    		————
    Sukari
    Sukari contributed 135,000 ounces to production in Q3.
    Contribution: 135,000 ounces
    		————

    Operational metrics

    24
    Adjusted net cash position
    $450 millionvs $906 million net debt a year ago
    Q3 FY25

    Represents the strongest balance sheet ever for the company.

    Adjusted EBITDA
    $1.6 billionup 109% YoY
    Q3 FY25

    Driven by higher gold price and sales volumes, partly offset by higher costs.

    Headline earnings
    $669 millionup 185% YoY
    Q3 FY25

    Bolstered by higher gold price and increased volumes.

    Total cash cost (managed operations)
    $1,225up 5% YoY
    Q3 FY25

    Market-driven factors (inflation, royalties, fuel, exchange) added $100/ounce. Productivity gains and Sukari volumes offset this, leading to a net 5% increase.

    All-in sustaining costs (managed operations)
    $1,766up 6% YoY
    Q3 FY25

    Reflecting planned reinvestment in stay-in-business capital, partially offset by higher gold status.

    Production
    768,000up 17% YoY
    Q3 FY25

    Driven by contributions from Sukari (135,000 oz) and a 30% increase from Obuasi, as well as Kibali, Geita, and Cuiaba.

    Production (managed operations)
    682,000up 16% YoY
    Q3 FY25

    Up from 586,000 ounces in Q3 FY24.

    Unrealized inflation rate
    4.7%
    Q3 FY25

    Represents CPI changes in operating jurisdictions, keeping upward pressure on costs.

    Brazil inflation rate
    5.2%up from 4.4% last year
    Q3 FY25

    A moderate increase compared to the prior year.

    Free cash flow margin
    45%almost doubled in 1 year
    Q3 FY25

    Reflecting strong focus on ensuring higher gold prices and increased margins flow to the bottom line.

    Total liquidity
    $3.9 billion
    Q3 FY25

    Underpinned by the net cash position, providing ample funding for capital pipeline and shareholder returns.

    Gold price increase flow-through to bottom line
    94%
    Q3 FY25

    94% of the gold price increase has flowed on to net operational cash flows.

    CVSA cash lockups
    $100 milliondown from $176 million
    Q3 FY25

    Significant reduction in cash lockups in Argentina.

    Brownfield exploration budget increase
    40%
    Q3 FY25

    Reflects increased focus on organic growth opportunities within existing assets.

    Capital expenditure run rate
    $368 million
    Q3 FY25

    Current quarterly run rate.

    Implied Q4 Capital expenditure
    $590 million
    Q4 FY25

    Implied to reach the midpoint of full-year guidance, with an anticipated increase due to fleet management strategy orders.

    Quarterly dividend payout
    $0.125
    quarterly

    Part of the company's dividend policy, with an annual true-up to 50% of free cash flow.

    Dividend declaration
    $460 millionmatches H1 FY25 declaration
    Q3 FY25

    Matches the dividend declared for the first six months of the year, reflecting confidence in the outlook.

    Dividend declaration
    $469 million
    H1 FY25

    Declaration for the first half of the year, representing a true-up payment to 50% of free cash flow.

    Tier 1 assets production share
    70%
    Q3 FY25

    Tier 1 assets now account for more than 70% of production.

    Tier 1 assets reserves share
    80%
    Q3 FY25

    Tier 1 assets now account for more than 80% of reserves.

    Geita exploration cost per ounce added
    $39
    2017-2024

    Cost to add 2 million ounces of reserves over and above 4.3 million ounces of depletion.

    Geita resource to reserve conversion rate
    30%
    historical

    The mine has maintained a resource to reserve conversion rate of more than 30%.

    Geita mill expansion capital intensity
    $1,000
    future

    Per ounce of incremental annual production, making it an extraordinarily profitable project.

    Industry KPIs

    7
    MetricValueDetails
    Safety0.96TRIFR
    Unit cash cost$1,225USD/ounce
    All in sustaining cost$1,766USD/ounce
    Reserve life new supply7.5years
    Growth project CAPEX first production—
    Ore grade recovery drilling by deposit—
    Production sales volume by metal and by mine768,000ounces

    Deals & partnerships

    2
    Serra Grande buyer (unnamed)Sale of Serra Grande asset

    The sale of Serra Grande is expected to be finalized before the end of the year, allowing the company to further sharpen its focus on core business.

    Cerro Vanguardia buyer (unnamed)Sale of Cerro Vanguardia (CVSA) asset

    The sale of Cerro Vanguardia is expected to be concluded either in the fourth quarter of this year or the first quarter of next year. The company has received offers.

    Capital programs

    3
    Geita Exploration Investmentunderway$50 million
    Period spend: $15 million additional per year
    Start: 2021

    Benefit: Grow reserves by 60% to 10 years or more

    Increased exploration budget from $35 million to $50 million annually to grow reserves and extend mine life.

    Geita Mill Expansionunder consideration$100 million

    Benefit: Increase production by 20% to 600,000 ounces

    A conceptual option to increase mill capacity, focused on maintaining margin and leveraging existing infrastructure. Currently in the study process.

    Nevada Arthur Complex Prefeasibility Study (PFS)underway

    Benefit: Finalize pit designs, grade control models, and strip ratios

    Comprehensive PFS running through the remainder of the year for the Arthur complex, with results expected in February next year.

    Risks & headwinds

    3
    Persistent inflationary headwindsQ3 FY25 and ongoing

    Unrealized inflation rate around 4.7%; Brazil inflation 5.2% (up from 4.4% last year); market-driven factors added $100/ounce or 9% to cash costs.

    Mitigation: Active cost management, full asset potential program, and productivity gains (8% improvement).

    Higher royaltiesFY25

    Estimated $40/ounce impact on cash costs for the full year.

    Mitigation: Considered a cost linked to gold price, which is beyond direct control but reflects higher revenue.

    Operational disruptions at specific minesQ3 FY25

    Lower tonnes and grades at Eagle, temporary plant stoppage at Siguiri (added $58/ounce to cash cost), and lower underground tonnes and grade at Sunrise.

    Mitigation: Siguiri mine operating normally, plant expected to return to full speed by Q3 next year; overall production still up 17% YoY.

    What to watch in Q4 FY25

    5

    Capital Allocation Review

    February next year (FY25 results)
    CurrentQ3 dividend declared $460 million; adjusted net cash $450 million.
    TargetDecision on additional capital distributions (buybacks, higher dividends, debt reduction).

    Why it matters

    This will determine the company's future shareholder return strategy and balance sheet management, especially with strong cash generation.

    I've also said, I probably said in the first half that we will reassess things in February, and we will determine if there's any need for additional further capital allocations.

    Q&A highlights

    6

    With record free cash flow and a strong balance sheet, how will the company manage shareholder returns beyond the current dividend policy, especially with the gold price increase?

    Management reiterated the dividend policy, including the Q3 true-up, and stated they would reassess additional capital allocation options (debt reduction, buybacks, increased dividends) in February next year. They noted their comfort with a positive net cash position.

    “But in February, we will definitely deal with additional sort of ideas for capital distribution or allocation, let's say.”

    asked by Adrian Hammond · answered by Alberto Calderon

    2 min read5 chapters

    Detailed Narrative

    01

    Safety and Operational Excellence

    The company reported a 17% year-on-year improvement in its TRIFR to 0.96, well below the 2024 ICMM average, highlighting a strong commitment to safety. This focus on operational excellence, driven by the 'full asset potential' program, has enabled the company to keep cash costs remarkably stable in real terms, countering the industry trend of rising costs. This has led to margin growth that has outpaced peers since 2021.

    02

    Geita's Long-Term Potential

    Geita, a Tier 1 asset, is undergoing a significant re-evaluation of its reserve life. An additional $15 million per year (totaling $50 million) is being allocated to exploration, aiming to grow reserves by 60% to 10 years or more from the current 7.5 years. A conceptual mill expansion costing around $100 million is also under consideration to increase production by 20% to 600,000 ounces, with a capital intensity of only $1,000 per incremental ounce, leveraging existing infrastructure.

    03

    Nevada Project Advancement

    The Arthur complex in Nevada, a world-class gold camp, is progressing with a comprehensive prefeasibility study (PFS) expected to conclude by year-end, with results due in February next year. The Merlin deposit, predominantly oxide, shows high-grade intercepts, reinforcing confidence in the project's Tier 1 quality and potential to become a long-life, multi-million ounce producer, with initial production targets of 800,000+ ounces per year. The drill bit is considered the best tool for value creation in this two-phase strategy.

    04

    Capital Allocation and Shareholder Returns

    The company's strong financial position, including a record $450 million adjusted net cash, supports a generous dividend policy. The Q3 dividend declaration of $460 million matches the first half's payout, reflecting confidence in future cash flow and providing one of the highest yields in the sector. Management plans to reassess capital allocation in February next year, considering additional distributions like buybacks or further debt reduction, while maintaining a conservative stance on reserve gold price assumptions.

    05

    Portfolio Optimization and Asset Sales

    AngloGold Ashanti continues to optimize its portfolio, with the sale of Serra Grande expected to finalize by year-end, sharpening focus on core businesses. The sale of Cerro Vanguardia is also anticipated in Q4 FY25 or Q1 FY26. These divestitures aim to streamline operations and enhance the company's geopolitical risk profile by concentrating on safer jurisdictions and higher-return assets, while also significantly reducing cash lockups in Argentina from $176 million to $100 million.

    AI-generated summary of the company’s earnings call. Not investment advice.