AngloGold Ashanti plc(AU) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Free cash flow for Q3 was nearly $1 billion, representing a 141% increase year-on-year, and close to the total free cash flow generated for all of 2024 [4][6] - Adjusted EBITDA grew by 109%, while headline earnings increased by 185% [6] - The adjusted net cash position improved to $450 million, marking the strongest balance sheet in the company's history [4][6] Business Line Data and Key Metrics Changes - Production benefited from higher contributions from Obuasi, Kibali, Geita, and Cuiabá, although this was partially offset by lower tonnes and grades at Iduapriem and Sunrise Dam [5] - Total cash cost for managed operations year-to-date was only up 3%, despite macro factors indicating a 9% increase due to inflation and rising royalties [5][6] Market Data and Key Metrics Changes - The company expects to remain within its guidance range, with royalties estimated at around $40 per ounce for the year [5] - The inflation rate affecting the company's operations was around 4.7%, contributing to upward pressure on the cost base [19] Company Strategy and Development Direction - The company is focused on enhancing performance from core assets and driving margin growth through cost discipline [9] - Investments in exploration are set to increase, with a total of $50 million allocated to Geita to grow reserves by about 60% [12][14] - The company is also laying a foundation for growth in Nevada, with the Arthur complex anticipated to become a significant long-life, multi-million ounce producer [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing strong cash flow generation and a commitment to maintaining operational excellence [6][9] - The company is actively looking for opportunities to mitigate cost impacts and has made significant progress in reducing cash lock-ups in Argentina [21] Other Important Information - The company declared a dividend of $460 million for Q3, matching the total declared in the first half of the year [7][8] - The sale of Sierra Grande is expected to be finalized before the end of the year, allowing the company to sharpen its focus on core operations [9] Q&A Session Summary Question: Can we expect to see a big CapEx number in Q4 or will some of this be rolled over into 2026? - Management anticipates relatively stable capital spend in Q4, with some increase expected but within guidance range [20] Question: What is the outstanding dividend payment from CVSA, and is it likely that you receive an amount this quarter? - Management confirmed that there are no restrictions on dividend payments to the parent company, with significant progress made in cash lock-ups [21] Question: Have any bonds been paid back over the quarter? - Management indicated that not much has been paid back in terms of bonds during the quarter [22]