Shares of AngloGold Ashanti (AU) surged 6.35% in Friday's pre-market trading session following the release of exceptional first-quarter results and the announcement of a new dividend policy. The South African gold mining giant reported a staggering 671% increase in headline earnings and introduced a shareholder-friendly dividend structure, igniting investor enthusiasm.

The company's Q1 2025 performance significantly exceeded market expectations, with headline earnings soaring to $447 million from $58 million in the same period last year. AngloGold Ashanti posted earnings per share of $0.88, comfortably beating the analyst consensus estimate of $0.84. Revenue for the quarter reached $1.96 billion, surpassing the projected $1.84 billion and marking a 69.33% increase from the previous year.

Driving this remarkable growth was a 22% year-over-year increase in gold production, bolstered by the first full-quarter contribution from the recently acquired Sukari Gold Mine in Egypt. The company's operational efficiency was further highlighted by a 607% surge in free cash flow, which rose to $403 million. AngloGold Ashanti's CEO, Alberto Calderon, attributed the strong start to the year to solid output improvements across the company's managed operations and effective cost management.

Adding to the positive sentiment, AngloGold Ashanti unveiled a new dividend policy, introducing a base dividend of $0.50 per share per annum, payable in quarterly installments. The company also aims to distribute up to 50% of its annual free cash flow as dividends, signaling a strong commitment to shareholder returns. This move, coupled with the robust financial results, has clearly resonated with investors, as reflected in the stock's pre-market surge.