AngloGold Ashanti (ASX:AGG) delivered a near fourfold increase in free cash flow in the third quarter of 2020, driving its Adjusted net debt to its lowest level in almost a decade.
The company continues to support the decision to double its dividend payout ratio.
The Company will pay shareholders 20 per cent of its free cash flow before accounting for capital expenditure in growth projects, up from 10 per cent previously.
The Company will also double the frequency of payouts from the current annual dividend declaration, to semi-annual payments.
Free cash flow rose to $339 million for the quarter ended 30 September 2020, a 290 per cent increase from the $87 million generated in the comparable quarter of last year, helped as a result of lower costs from continuing operations, lower capital expenditure and a 30 per cent higher gold price received.
This figure excludes the $200 million of proceeds received for the sale of its South African operating assets on 30 September 2020.
Shares in AngloGold Ashanti (ASX:AGG) closed 1.23 per cent higher at $6.56 yesterday.