AngloGold Ashanti reports 764% profit surge in Q1 2025

CEO Alberto Calderon credited the company's strong performance to operational improvements and favorable market conditions.

He stated, “This is a very strong start to the year, especially at our managed operations.”

Gold production rose by 22 percent to 720,000 ounces. Managed operations saw a 28 percent increase. This growth was mainly due to the Sukari Gold Mine in Egypt, which added 117,000 ounces.

Several existing mines also reported significant increases. Siguiri produced an additional 32,000 ounces, while Tropicana added 21,000 ounces. However, declines occurred at Iduapriem (-22,000 ounces) and Kibali (-13,000 ounces).

The average gold price during the quarter was US$2,874 per ounce. This was up from US$2,063 per ounce in Q1 2024. Group gold income increased to US$1.927 billion from US$1.138 billion last year.

Despite inflationary pressures of about five percent across operations, AngloGold Ashanti limited all-in sustaining costs (AISC) to just one percent increase. AISC reached US$1,640 per ounce.

Managed operations experienced a two percent decrease in total cash costs and AISC per ounce. The strong financial results improved the company’s balance sheet significantly.

Adjusted net debt fell by 60 percent year-on-year to US$525 million. The adjusted net debt to adjusted EBITDA ratio improved from 0.86 times to 0.15 times in Q1 2024.

AngloGold Ashanti declared an interim dividend of 12.5 US cents per share for the quarter. The new policy aims for a 50 percent payout of annual free cash flow with a minimum base dividend of US$0.50 annually.

The company reaffirmed its full-year guidance for 2025. It projects gold production between 2.9 million and 3.225 million ounces with AISC between US$1,580 and US$1,705 per ounce.

AngloGold Ashanti is refining its portfolio by selling its Doropo and ABC Projects in Ivory Coast. It aims to focus on existing operations and projects in the United States.

Industry analysts note that the company's performance reflects both market strength and successful asset integration. However, challenges remain with cost management amid global inflation and production declines at some sites.

Payment of the declared dividend will begin on June 13, 2025. The record date for shareholders is set for May 30, 2025.