ANGLOGOLD Ashanti on July 13 urged shareholders to support a resolution to buy back up to $2bn worth of its own shares after proxy advisory ISS questioned the tactic.
“Given the ‘Aggregate Cap’ ($2bn), the board does not consider that the five-year authorised period gives rise to any increased corporate governance risk,” said AngloGold of ISS’s criticism.
AngloGold unveiled its proposed buy-back programme in May following a first-quarter performance that included another instalment of record cash flow. In this regard, adding buy-backs to a previously upgraded dividend policy is completely in line with peer group capital allocation plans.
Where AngloGold is an outrider is the five-year authorisation period that ISS raised. Every other major gold producer asks for either a 12-month rolling authorisation (Barrick Mining, Agnico Eagle, Kinross) or an open-ended framework tied to free cash flow, such as Newmont, the world’s largest gold miner.
ISS argues AngloGold is asking for too much latitude from shareholders. But its buy-back programme is actually quite conservative as it implies an annualised $400m, which compares to Newmont’s $6bn buy-back programme. In May, Barrick doubled its share buy-back programme to $3bn.
“Share buy-backs tend to be popular in North America because they provide earnings momentum,” says a market analyst. AngloGold points out the repurchase period is “fully provided for under UK law, which is where we’re based.” Votes will be cast at AngloGold’s July 23 general meeting, where the resolution requires a simple majority.
In 2025, the world’s largest gold miners generated $25.8bn in free cash flow – almost three times the $9.2bn generated in 2024, says Metals Focus, a UK precious metals consultancy.
By the first quarter, cash generation had reached another record; after total capex, cash flow increased to $10.7bn, up 10% quarter-on-quarter – a record increase since Metals Focus began its analysis in 2009.
These are happy times for long-time gold investors, even if the metal has lost 25% since its January peak of $5,369/oz. Gold has tended to keep its nose above $4,000/oz even as headlines test that base. (It’s worth remembering it’s the northern hemisphere summer, so liquidity is thin.)
“Our outlook for gold and the broader precious metals complex remains positive,” says Toni Teves, a metals strategist for UBS.
“While prices have consolidated recently, we continue to forecast a rebound from current levels by year-end, supported by the same core drivers that have underpinned the market over the course of this cycle,” she adds.
