AngloGold Ashanti has kicked off 2025 on a high note, tripling its gross profit in the first quarter to $839 million—up more than 177% from the $302 million posted in the same period last year.
The sharp upswing is credited to stronger gold prices, heightened output, and tighter cost control. The average price of gold during the quarter climbed to $2,874 per ounce, a significant jump from $2,063 per ounce a year ago.
“This is a very strong start to the year, particularly at our managed operations,” said CEO Alberto Calderon. “We’ve seen strong growth in production with the addition of Sukari and our cost control efforts continue to offset inflation, which has ensured that we capture the benefit of the higher gold price.”
The group produced 720,000 ounces of gold during the quarter, reflecting a 22% year-on-year increase. This was largely driven by the first full-quarter contribution from Egypt’s Sukari Gold Mine, acquired in late 2024, as well as production gains of 32,000 ounces at Siguiri and 21,000 ounces at Tropicana. These gains helped offset lower volumes from Iduapriem and Serra Grande.
Profit before tax rose dramatically to $729 million from $167 million a year earlier, while net earnings attributable to shareholders surged nearly eightfold. Free cash flow also grew steeply, hitting $403 million—up from just $57 million in Q1 2024.
“We remain committed to closing the valuation gap with our North American peers by driving continuous improvements in operating performance, enhancing cash conversion, and maintaining a disciplined approach to capital allocation,” Calderon added.
Total cost of sales increased to $1.23 billion from $949 million, reflecting higher royalties and inflation-related expenses. Despite this, managed operations recorded a 2% drop in cash costs per ounce, which fell to $1,213 from $1,232—helped by Sukari’s lower cost structure and operational improvements at Siguiri.
However, costs rose steeply at non-managed assets such as Kibali, where cash costs jumped by 59% to $1,325 per ounce.
Cash generated from operations reached $725 million in the quarter, representing a 188% year-on-year increase from $252 million. This was attributed to elevated gold prices and improved sales volumes, though it was partly weighed down by higher taxes and operating expenses.
Earlier this month, AngloGold Ashanti also finalized the divestiture of its Doropo and ABC Projects in Côte d’Ivoire, a strategic step aimed at concentrating resources on its most promising assets, particularly in the United States.
