AngloGold Ashanti shares tumble over 7% on earnings miss

Published 19/02/2025, 12:52
AngloGold Ashanti shares tumble over 7% on earnings miss

LONDON -On Wednesday, shares of AngloGold Ashanti plc (NYSE:AU) fell -7.30% after the gold miner reported fourth quarter earnings and revenue that missed analyst expectations.

The company posted Q4 earnings per share of $0.89, falling short of the $0.99 consensus estimate. Revenue came in at $1.72 billion, below the $1.75 billion analysts were expecting.

Despite the earnings miss, AngloGold Ashanti delivered strong year-over-year gains in 2024. Free cash flow rose to $942 million, up from $109 million in 2023. Adjusted EBITDA increased 93% to $2.75 billion.

"The significant growth in free cash flow - to almost a billion dollars in 2024 - is a result of our focus on continued operational and efficiency improvements, which in turn have allowed us to capture the benefit of a healthy gold price," said CEO Alberto Calderon.

Gold production for the group, including the newly acquired Sukari mine, was 750,000 ounces in Q4, up from 738,000 ounces in the year-ago quarter. Total (EPA:TTEF) cash costs rose 9% YoY to $1,144 per ounce.

The company announced a new dividend policy targeting a 50% payout of free cash flow, with a base dividend of $0.50 per share annually. For 2024, AngloGold Ashanti declared total dividends of $0.91 per share.

Looking ahead, the miner forecasts 2025 gold production between 2.9-3.225 million ounces at total cash costs of $1,125-$1,225 per ounce.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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