File: A gold mine. AFP/Rodger Bosch
JOHANNESBURG - Gold producer AngloGold Ashanti will double its dividend payout ratio due to an increase in profit margins.
The good fortune to shareholders also comes with the company’s ongoing reduction in borrowing.
AngloGold will now pay shareholders 20 percent of its free cash flow before accounting for growth capital expenditure.
That’s up from 10 percent previously.
It will also double the frequency of payouts from the current annual dividend declaration to semi-annual payments.
The mining firm’s net debt is now at the lowest level in almost a decade.