AngloGold generates a profit following a surge in the price of gold

AngloGold Ashanti (AU.N), which opens a new tab, announced higher payouts for its shareholders on Wednesday. The precious metal’s run to record highs saw the company’s profit last year soar to $954 million from a loss of $46 million the year before.

From roughly 2.7 million ounces produced last year, the gold producer increased its output expectation for this year to between 2.9 and 3.2 million ounces. Following its acquisition of Centamin assets last year, AngloGold said that it is increasing output.

After paying out 19 U.S. cents per share the previous year, AngloGold announced a final dividend of 91 U.S. cents per share, or roughly $439 million. The miner announced that it was aiming for a 50% payout of free cash flow by altering its dividend policy.

According to CEO Alberto Calderon, AngloGold is “able to pass on those benefits to shareholders in a more generous dividend policy” as a result of the gold price increase, which has given the company the strongest balance sheet position in over ten years.

AngloGold’s shares have increased by about 86% in a year, according to LSEG data, thanks to the bullion surge and the company’s primary listing shift to New York.

Opening a new tab, peers like Barrick Gold (ABX.TO) have also raised investor returns.