AngloGold Ashanti (AU) stock surged 5.33% in pre-market trading on Friday following the release of impressive first-quarter results and the announcement of a new dividend policy. The South African gold miner reported a staggering 671% increase in headline earnings to $447 million for Q1 2025, significantly outperforming market expectations.
The company's stellar performance was driven by a 22% increase in gold production compared to the same period last year. AngloGold Ashanti posted headline earnings per share (HEPS) of $0.88, showcasing robust operational efficiency and benefiting from higher gold prices. The precious metal has gained 2.5% this week, supported by a weaker US dollar and ongoing geopolitical tensions.
In a move that further boosted investor confidence, AngloGold Ashanti introduced a new dividend policy. The company announced a base dividend of $0.50 per share per annum, to be paid in quarterly installments of $0.125 per share. Additionally, the miner aims to distribute up to 50% of its annual free cash flow as dividends, signaling a strong commitment to shareholder returns. Despite the positive results, AngloGold Ashanti reaffirmed its full-year 2025 guidance, maintaining a cautious outlook amidst global economic uncertainties.
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