AngloGold Resumes Dividends As H2 Earnings Rise, Despite Weak Production

(RTTNews) - AngloGold Ashanti (AGD.L, AU) Tuesday said it would resume dividend payments following a hiatus of more than three years, after lower operating and interest costs helped it nearly double free cash flow to $278 million. The company declared a dividend of approximately 10 US cents a share for 2016.

In its second half, AngloGold Ashanti recorded adjusted EBITDA of $767 million, up 13% from $679 million last year. The earnings growth reflected the 14% increase in the average gold price received which was partially offset by a 5% reduction in ounces sold over this period.

Production was at 1.9Moz, compared to 2.0Moz in 2015. This operating result was achieved despite safety-related stoppages that impacted output by roughly 60,000oz in SA, planned lower grades at Geita and Tropicana, and the Obuasi mine having been on care and maintenance for last year.

Looking ahead, the company said its production guidance for 2017 year is estimated to be between 3.6Moz and 3.755Moz. Capital expenditure is anticipated to be between $950 million and $1.05 billion.

Chief Executive Officer Srinivasan Venkatakrishnan said, "We will continue to deliver on our strategy through the development of high-return, brownfield projects in order to continue to improve the underlying quality of our portfolio."