AngloGold Ashanti – USD 2.6 billion in cash flow and high dividends
USD 722 million in free cash flow in just three months, USD 2.6 billion since the start of the year and another dividend of USD 361 million. AngloGold Ashanti is profiting handsomely from the high gold price. However, the published quarterly figures also show that even the major producers are struggling with operational difficulties.
Adjusted EBITDA rose 12% to USD 1.57 billion in the third quarter. Gold production, by contrast, declined compared with the same period last year. The reasons included scheduled work to develop new mining areas and temporary restrictions at individual mines. Free cash flow was therefore below the USD 920 million recorded in the prior-year quarter.
Nevertheless, the financial position is comfortable. At the end of September, AngloGold had net cash of USD 1.26 billion and confirmed its full-year production guidance. Shareholders will receive an interim dividend of USD 0.71 per share.
To achieve the annual targets, the coming months will see several African mines take centre stage. In Ghana, the Obuasi mine is expected to increase production again after underground operations were disrupted by a fatal accident. At Iduapriem, higher-grade mining areas became accessible again following flooding. Additional ore zones are also to be developed at the Sukari mine in Egypt.
The group is therefore counting on higher production in the final quarter. If the operational recovery succeeds, AngloGold could use its strong balance sheet to finance further investment and distributions.
Desert Gold Ventures – Gold production moves within reach
Desert Gold Ventures is approaching a crucial step in its corporate development. The Canadian gold explorer is advancing the construction of its first processing plant at its SMSZ project in western Mali. The plant, with a capacity of 200 tonnes of ore per day, has already been delivered to the Barani site. The required 650-kVA generator has also arrived. According to the latest company announcement, initial gold recovery is scheduled to begin in the fourth quarter of 2026.
The fully controlled SMSZ project covers around 440 km² along the Senegal-Mali Shear Zone, a major gold region in West Africa. The current resource estimate comprises 336,800 ounces of gold in the measured and indicated categories and a further 879,900 ounces in the inferred category. More than 20 identified gold zones underline the additional exploration potential.
An updated preliminary economic assessment (PEA) dated November 2025 calculated an after-tax net present value (NPV) of USD 61 million and an internal rate of return (IRR) of 57%. The model calculation relates to a larger, modular processing plant for the Barani and Gourbassi deposits.
Important operational prerequisites have also been established. Access roads to the Barani site have been improved, construction materials delivered, and water confirmed through drilling. Next steps include completing construction and assembling and commissioning the plant.
With the planned initial gold recovery, Desert Gold could initiate the transition from a pure explorer to a producer. At the same time, the extensive resources and numerous gold zones that have not yet been fully explored provide a basis for further project development.
IAMGOLD – USD 525 million for higher margins
IAMGOLD is investing around USD 525 million to retain a larger share of the future earnings from its Côté gold mine in Ontario. The Canadian producer announced that it is exercising its contractual right to repurchase half of an existing royalty from Franco-Nevada.
This is expected to reduce the existing royalty on the mine’s gross margin from 7.5% to 3.75%. As project partner Sumitomo is not participating in the repurchase, IAMGOLD will bear the entire cost and receive an additional economic benefit in return. Based on its 70% stake in the mine, the company expects an effective charge of 2.14% going forward. Completion is scheduled for December.
The move is being financed by significantly improved earnings. IAMGOLD’s third-quarter production totalled 186,900 attributable ounces of gold. Of this, 64,400 ounces came from Côté and 94,000 ounces from the Essakane mine in Burkina Faso.
The group’s three mines generated USD 404 million in mine-site free cash flow. Adjusted net income reached USD 237 million. At the end of September, IAMGOLD had a liquidity reserve of around USD 1.6 billion.
Shareholders are also benefiting. In the third quarter alone, the company bought back USD 134.7 million of its own shares. Since the programme began in December 2025, repurchases have totalled nearly USD 600 million.
The annual guidance of 720,000 to 820,000 ounces was confirmed by management. At the same time, IAMGOLD is working on further expansion and development projects. The royalty repurchase is particularly important because it increases its share of future economic returns from an already producing mine without the need to develop additional gold deposits.
Conclusion
AngloGold Ashanti is generating billions in free cash flow and uses it to finance investment and dividends. IAMGOLD is using its strong balance sheet for share buybacks and to reduce long-term royalties. Desert Gold Ventures, by contrast, has yet to establish its own production capacity. While the major producers are already generating high profits, Desert Gold’s opportunity lies in successfully developing its gold deposits, which could pave the way for a re-rating of the company.
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