JOHANNESBURG (Reuters) - AngloGold Ashanti says its profit surged to $954 million last year from a loss of $46 million in the prior year amid a rally in prices for the precious metal. The gold
AngloGold Ashanti Reports Profit Surge Amid Gold Price Increase
JOHANNESBURG (Reuters) -AngloGold Ashanti's announced increased returns for its shareholders on Wednesday, after its profit surged to $954 million last year from a loss of $46 million in the prior year, boosted by the precious metal's rally to record highs.
The gold producer raised its output forecast for this year to between 2.9 million ounces and 3.2 million ounces from about 2.7 million ounces produced last year. AngloGold said it is raising output after buying Centamin assets last year.
AngloGold declared a final dividend of 91 U.S. cents per share, or about $439 million, from 19 U.S. cents a share in the prior year. The miner said it was changing its dividend policy to target a 50% payout of free cash flow.
CEO Alberto Calderon said the gold price rally had given AngloGold the strongest balance sheet position in more than a decade, and it is "able to pass on those benefits to shareholders in a more generous dividend policy".
According to LSEG data, AngloGold's shares have rallied almost 86% in a year, driven by the move of its primary listing to New York, as well as the bullion rally.
Peers, including Barrick Gold, have also increased returns to investors.
(Reporting by Felix Njini in Johannesburg and Nelson Banya in Harare. Editing by Jane Merriman and Barbara Lewis)
