ANGLOGOLD Ashanti said on Tuesday it planned to spend $100m expanding production a fifth at Tanzania mine Geita to 600,000 ounces a year.
The New York-listed miner also said it would invest more heavily converting resources into reserves at the mine as part of a group-wide strategy. AngloGold would spend $50m a year in exploration at Geita over the next three years compared to $35m a year previously.
The expansion of Geita comes as AngloGold continues to reap the benefits of a higher gold price – up 40% in the third quarter – and a lift in production year-on-year. The outcome for the third quarter was free cash flow of $920m (2024 Q3:$381m) and a significantly strengthened balance sheet with net cash of $450m.
AngloGold declared a third quarter dividend of 91 US cents per share, equal to $460m. This takes dividends for the first nine months of the group’s 2025 financial year to $927m. Included in the proposed dividend is a minimum payout of 12.5c/share ($63m) while the balance comprises half of free cash flow.
AngloGold unveiled a new rebased dividend policy this year which also included a commitment to pay out 50% of free cash flow at the year-end. However, confidence in cash flow is high enough to support that payout in the third quarter. AngloGold took a similar decision to pay out free cash for the second quarter.
Adjusted Ebitda for the quarter more than doubled year-on-year to $1.6bn in the quarter from $746m previously. Headline earnings rose to $672m, or $1.32 per share from $236m, or $0.56 per share in 2024.
Commenting on the plans for Geita, AngloGold said a conceptual study showed potential for a one million ton a year mill expansion supporting 600,000 oz/year in output “for at least a decade”. It had started a detailed feasibility study due to be completed by 2027.
In a similarly ambitious plan, the increase in exploration spend at Geita was aimed at increasing the mineral reserve 60% and extending the life of more to 10 years or more. It was just part of a group-wide emphasis on mineral reserve conversion.
“Over the next three years, targeted spending will be directed towards exploration, mineral reserve development, and the conversion of mineral resource to mineral reserve at sites with high geological potential,” the group said.
The year-on-year increase third quarter production – from 657,000 to 768,000 oz (+17%) – was by dint of the acquisition of Centamin’s Sukari mine in Egypt as well as a 30% lift in output from Obuasi, a mine in Ghana.
