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Maze Dive DIVE Nº 009

AngloGold Ashanti (JSE: ANG): (JSE: ANG): 149% Cash Flow Boom and Nevada

6 min

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AngloGold Ashanti (JSE: ANG) grew Q2 2025 free cash flow 149% to $535m, paid an 80 US cent dividend early and kept buying into Nevada's Beatty District.

Show notes

AngloGold Ashanti didn’t just polish the gold bars. It threw a whole glitter party: production up 21%, free cash flow up 149%, a dividend paid early, and a shopping trip to the Nevada desert. Let’s dig in.

By The Money Maze | Listen to the episode: Spotify

AngloGold Ashanti used to be a classic Johannesburg mining house. Today its primary listing is on the New York Stock Exchange, it’s headquartered in London and Denver, and it keeps a JSE listing under ANG. Its mines are mostly in Africa, with growing ambitions in the US. On 1 August 2025 it released results for the second quarter of 2025.

The headline number: $535 million free cash flow

Free cash flow for the quarter was $535 million, up 149% from $215 million a year earlier. That’s moving from Castle Lite to Moët overnight.

Free cash flow is what’s left after running the mines and paying for sustaining investment. It’s the cash that can pay dividends, cut debt or fund growth. For miners, it’s the number that matters most, because profits can be flattered by accounting while cash can’t.

AngloGold Q2 2025 in plain English

  • Gold price received: $3,287 an ounce, up from $2,330 a year earlier.
  • Gold production: up 21% year on year. Managed operations grew 25%, with Obuasi in Ghana and Geita in Tanzania doing the heavy lifting and Sukari in Egypt added after the Centamin acquisition.
  • Adjusted EBITDA: up 111% to $1.44 billion.
  • Headline earnings: $639 million, or $1.25 a share, up from $0.60.
  • Adjusted net debt: down 92% to $92 million, just 0.02 times EBITDA.
  • Liquidity: $3.4 billion, including $2.0 billion cash.

Translation: more ounces, sold at a much higher price, with costs kept roughly flat in real terms. When volume and price both go your way, profits don’t just grow. They explode.

The dividend: Christmas bonus in July

AngloGold declared an interim dividend of 80 US cents per share. That includes the minimum quarterly payment of 12.5 US cents, about $63 million, plus a top-up to pay out half of the free cash flow generated in the first six months.

Here’s the interesting bit. The dividend policy only commits to that 50% “true-up” at year-end. The board chose to pay it early because of strong cash flow and confidence in the outlook. In Mzansi terms, that’s your Christmas bonus arriving in July.

Costs: AISC

All-in sustaining cost (AISC) is the miner’s full cost to produce an ounce and keep the mines going. AngloGold said AISC for managed operations stayed flat in real terms, meaning cost increases roughly matched inflation.

With a gold price above $3,200 and AISC well below that, the margin per ounce was enormous. That gap is the engine of the cash flow.

The Nevada gold rush

AngloGold isn’t just banking profits. It’s consolidating the Beatty District in Nevada, which it calls the most significant emerging gold district in the US. In July 2025 it agreed to buy Augusta Gold for C$1.70 a share, about C$152 million, adding the Reward and Bullfrog projects next to its existing ground.

Why bother? Buying neighbouring projects lets one company plan a whole district: shared processing, shared infrastructure, longer mine life. It’s like buying all the beachfront plots before everyone else pitches their umbrellas. It also adds growth in a low-risk jurisdiction, balancing the African portfolio.

The group is also pruning: it sold its ABC and Doropo projects in Côte d’Ivoire and announced the sale of the Serra Grande mine in Brazil.

Closing the valuation gap

AngloGold has said openly that it wants to close the valuation gap with its North American peers, which have historically traded on richer multiples. Moving its primary listing to New York in late 2023 was part of that plan. In June 2025 it was added to the Russell 1000, Russell 3000 and Russell Midcap indices, which means US index funds now have to own it. Remember our index rebalancing episode? Same mechanics: index inclusion brings forced buyers, more liquidity and more attention from big US institutions.

Safety

The total recordable injury frequency rate improved to 0.80 per million hours worked, 17% better year on year. In mining, that’s a number that matters for people first and investors second.

The risks

  • The gold price: the biggest driver of the results, and AngloGold doesn’t control it. If gold falls, margins shrink fast.
  • Country risk: operations in Ghana, Tanzania, Egypt, Guinea and elsewhere come with tax, permitting and political risk.
  • Execution: new projects in Nevada must be built on time and on budget.
  • Rand and dollar: results and dividends are in US dollars. JSE investors receive rands, so currency moves matter.

Stokvel Starter Pack

  • Free cash flow: $535 million, up 149%.
  • Gold price received: $3,287 an ounce.
  • Production: up 21% year on year.
  • Interim dividend: 80 US cents, half of free cash flow paid early.
  • AISC: all-in sustaining cost per ounce.
  • Adjusted net debt: $92 million, practically nothing.

Takeaway: A higher gold price gives every miner a lift. AngloGold turned that lift into cash, paid half of it out early, and used the rest to build a Nevada future. The risk is that the gold price giveth and the gold price taketh away.

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More from The Money Maze

Sources

  1. Q2 2025 earnings release, AngloGold Ashanti (SEC filing), 1 Aug 2025.
  2. Q2 2025 short-form results announcement, AngloGold Ashanti on SENS, 1 Aug 2025.
  3. Augusta Gold announces acquisition by AngloGold Ashanti for C$1.70 per share, Augusta Gold, 16 Jul 2025.

This is not financial advice.

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0:00 Welcome back to the Maze Dive, our Sunday deep dive from the money Maze where we take a single JSE listed company that's been making headlines, chop it up like a good Bunny chow and see if there's some juicy investment flailing inside. Today's pick Anglo Gold Ashanti. These oaks didn't just Polish their gold bars, they through a whole glitter party. 21% jump in gold production, free cash flow up 149 percent and a dividend that'll make the income hunters smile wider than a bury roll on payday and justice. When you thought they were done.

0:40 They also went shopping in Nevada because why not turn the desert into a golden buffet? So let's dig into this. Q2 2025 saw Anglo Gold rake in 535 million in free cash flow. That's up from 215,000,000 a year ago. That's like moving from Castle Light to moay overnight.

1:04 I hope I pronounced correct. The mind recipe. Higher gold prices and more production muscle. So let's look at financial Nuggets. In normal plain English, gold price is at $3287.00 per oz. That's like selling bull Tong for 1000 Rand stick gold production. They up 21% year on year to 804,000 oz. Obuasi in Ghana and guitar in Tanzania brought the muscle, while Sukari in Egypt joined the party after the sentiment acquisition.

1:42 Revenue 2.4 billion, nearly double last year's $1.3 billion. That's what happens when you have both volume and price on your side. Headline earnings $639 million, or $1.25 per share. That's up 151% from last year. Yep, that's some lack of growth debt. Well adjusted net debt dropped 92% to just $92 million.

2:11 They're basically almost debt free. That's the financial equivalent of paying off your Edgars account and feeling like a bowler. Now let's get to the big one. The cherry on top? An interim dividend of 80 US cents per share. This isn't just a mandatory minimum payment. The board decided to spoil shareholders early by paying half of free cash flow up front. In a Mzanzi terms, that's like being given your Christmas bonus in July.

2:41 Now strategic moves the Nevada gold rush. Anglo Gold isn't just banking profits type playing Monopoly. In real life, they've been consolidating the BI district in Nevada planning to acquire Augusta Gold. Why? Well, to tighten their grip on one of the hottest emerging gold districts in the US Think of it as buying up all the prime beach front plots before everyone else pictures the umbrellas. So operational wins and challenges. While they managed operations delivered at 25% jump in production to 729,000 oz.

3:19 Safety is also shining with a record low injury frequency of 0.80 per million hours worked. Proving you can dig for gold without digging your own grave costs the dry slightly. All in sustaining cost 1000, $666 per oz, that's up 7%. But when you're selling price is over $3200 an ounce, that's a gross margin even the big banks would envy the quiddity.

3:51 And the balance sheet had a bit of a glow up. Liquidity now sits at $3.4 billion, including two billion cash. Their net debt to EBITDA ratio is basically zero. We're looking at a .02 * 2 the exact. If Anglo Gold were a friend, they'd be the one who buys a Hilux cash and still has money left to throw A massive big Bry O the investor.

4:18 Takeaways. Strong difference signal plus almost no debt equals confidence. Gold price tailwinds plus the Nevada expansion equals long term growth story risks. Well, gold prices are as Moody as the Eskom CEO's resignation schedule. If prices dip, so will all of these fat margins. So your stock fell start to back.

4:41 For the JSC Jedi, Anglo Gold, Ashanti addition, the few cash flow is 535,000,000. That's an increase of about 149%. Gold price is sitting at $3287.00 an ounce. Production is up 12% year on year. Dividend $0.80 per share which is an interim dividend. Net debt is down 92% to just $92 million. Strategy while the Nevada expansion, which means more gold consolidation, And while my jokes may sparkle brighter than a Krugerrand, this is not financial advice. Please do your own research.

5:21 Chat to a licensed advisor. We'll catch you next Sunday for another maize dive where we take a deep dive into a single company that made the news headlines this week. Till then have a lack of week.

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