ANGLOGOLD ASHANTI PLC (AU) Q1 2026 Earnings Call Transcript
Bullish Gold 54.55B USA
Next Earnings
2026-05-08
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AngloGold Ashanti posted record 2025 cash flow and dividends, robust Obuasi/Sukari performance, a transformative Arthur project, and disciplined 2026 guidance aligned with strong free cash flow generation.
⭐ Key Highlights
Record safety performance
AngloGold Ashanti achieved its lowest ever total recordable injury frequency rate of 0.97, underscoring safety as a driver of operational excellence.
Strong free cash flow and dividend deployment
2025 free cash flow reached $2.9 billion (up ~3x vs 2024), supported by record cash generation and a dividend policy that returned nearly $2 billion in 2025.
Preeminent asset performance and portfolio leverage
Obuasi and Sukari delivered record or near-record performance with higher production and cash flow, while Tier 1 assets now account for over 70% of production and 80% of reserves.
Arthur Gold project advances and Nevada potential
Arthur transitioned from discovery to a major high-return project with a 4.9 million ounce initial reserve and a plan to expand reserves, while Nevada’s Arthur District remains a marquee growth driver.
2026 guidance and capital allocation discipline
Guidance contemplates 2.8–3.17 million ounces of gold production for 2026 with disciplined capital allocation, sustaining and growth capex, and a continued focus on free cash flow generation.
✔Positive Signals
- Record free cash flow of $2.9 billion in 2025 and net cash position entering 2026
- Dividend policy remains highly shareholder-friendly with regular payouts and a 50% free cash flow true-up
- Obuasi ramp-up and Sukari record performance driving margin and cash flow
- Arthur project advances with 4.9Moz initial reserve and strong exploration upside
- Strong balance sheet, ample liquidity, and disciplined capital allocation supporting future growth
✖Negative Signals
- 2025 cash costs rose 7% to $1,242/oz due to royalties, inflation, fuel and FX movements
- AISC and total cash costs were marginally above guidance due to external cost pressures
- Iduapriem and Sunrise Dam contributed less in 2025, partially offsetting portfolio gains
- M&A and CVSA disposition plans uncertain or paused amid market conditions
📊Financial Results
- 2025 adjusted EBITDA rose 129% to $6.3 billion; basic earnings $2.6 billion (up from $1.0 billion in 2024)
- Production increased 16% YoY to 3.1 million ounces; managed operations up 19% to 2.8 million ounces
- Net cash from operating activities rose 143% to $4.8 billion; free cash flow nearly tripled to $2.9 billion
- Cash costs for managed operations increased to $1,252/oz; ASIC $1,751/oz reflecting royalties and inflation pressures
- Net debt shifted to a net cash position of $0.9 billion by end-2025 from net debt of $0.6 billion at end-2024
🔮Future Guidance
- 2026 group production guidance: 2.8–3.17 million ounces
- 2026 total cash costs (managed): $1,335–$1,455 per ounce
- Sustaining capex: $1.0–$1.14 billion; non-sustaining capex: $0.785–$0.835 billion
- North Bullfrog capex included in 2026 guidance (roughly $320 million for 2027 planning; Nevada focus)
- Arthur Feasibility; EIA timing: feasibility study starting in Q2 2026 with finalization targeted in Q4 2027; potential permitting activities beginning Q1 2027
💡Interesting Insights
- Arthur is positioned as a scalable, district-scale Nevada project with a simple oxide processing route designed for rapid development and strong returns, potentially anchoring the portfolio into the 2030s
- Management emphasizes prioritizing brownfield and greenfield brownfield growth with high ROIC while maintaining tight capex discipline, including substantial tailings and water management investments
Detailed Analysis
AI-generated summary of ANGLOGOLD ASHANTI PLC earnings call transcript.
The company reported a strong 2025 with record free cash flow ($2.9B) and net cash position, driven by higher production (3.1Moz, up 16%) and a 45% higher gold price, while maintaining cost discipline. Obuasi and Sukari led the portfolio, with Obuasi up 20% YoY to 266k oz and Sukari delivering record production and cash flow as part of a broader shift to Tier 1 assets comprising over 70% of output. The Arthur Gold project in Nevada emerged as a marquee asset, transitioning from discovery to a high-return, district-scale opportunity with an initial 4.9Moz reserve and substantial upside. The group reconfirmed a disciplined capital-allocation framework, including a quarterly base dividend and a 50% of free cash flow true-up, with total 2025 dividends near $1.8B. For 2026, the company guides 2.8–3.17 Moz of production, higher cash costs due to royalties and inflation, and sustaining capital of $1.0–$1.14B, plus non-sustaining capex of $0.785–$0.835B, while prioritizing growth in Nevada, Obuasi, Geita and Cuiaba and maintaining a strong balance sheet.
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