Gold mining company AngloGold Ashanti on Friday posted a colossal surge in half-year free cash flow generation, most of it coming in the three months to June 30.
Free cash flow before growth capital, the metric on which dividends are calculated, rose 376% – or nearly fivefold – to $324-million in the first half of 2020, compared with $68-million for the same period last year.
Compared with an outflow of $31-million in the same period last year, the Johannesburg- and New York-listed company totally weathered the Covid-disruption with $173-million worth of second-quarter free cash generation.
“The business is in excellent shape and cash flows are extremely robust, demonstrating the significant operating leverage we have to this strong gold price,” outgoing AngloGold CEO Kelvin Dushnisky stated in a release to Mining Weekly.