AngloGold to double dividend pay ratio after cash flow boost

DURBAN – AngloGold Ashanti’s share price leapt by more than 10 percent on the JSE yesterday after the gold mining company said it would double its dividend payment ratio, boosted by a 290 percent increase in free cash flow to $339 million (R5.5 billion) for the third quarter to end September, up from $87m compared to the same quarter last year.

The share closed 10.52 percent higher on the JSE yesterday at R407.62.

The company said it would pay its shareholders 20 percent of its free cash flow before accounting for capital expenditure in growth projects, up from 10 percent previously.

It would also double the frequency of payouts from the current annual dividend declaration to semi-annual payments.

The increase of the free cash flow was boosted by lower costs from continuing operations, lower capital expenditure and a 30 percent higher gold price received.