AngloGold Ashanti reports 764% profit surge in Q1 2025
Gold mining giant AngloGold Ashanti has reported a 764 percent increase in profits for the first quarter (Q1) of 2025, as the company reaps the benefits of higher gold prices and increased production.
The London-headquartered miner, which operates primarily in Africa, Australia and the Americas, announced that profit attributable to shareholders reached US$443million in Q1, up from US$58million in the same period last year.
Headline earnings per share rose to 88 cents, a 529 up increase compared to the 14 cents reported in Q1 2024. The company’s free cash flow surged by 607 percent to US$403million.
CEO Alberto Calderon attributed the strong performance to operational improvements and favourable market conditions.
“This is a very strong start to the year, particularly at our managed operations. We have 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,” he said.
The company’s gold production increased by 22 percent to 720,000 ounces, with managed operations seeing a 28 percent rise. This growth was primarily driven by the first full-quarter contribution from the recently acquired Sukari Gold Mine in Egypt, which added 117,000 ounces.
Several existing mines also posted significant production increases, including Siguiri (+32,000 ounces) and Tropicana (+21,000 ounces), though these gains were partially offset by declines at operations such as Iduapriem (-22,000 ounces) and Kibali (-13,000 ounces).
The average gold price received during the quarter was US$2,874 per ounce, up from US$2,063 per ounce in Q1 2024, providing a substantial revenue boost. Group gold income rose to US$1.927billion from US$1.138billion a year earlier.
Despite inflationary pressures estimated at five percent across its operations, AngloGold Ashanti managed to limit the increase in all-in sustaining costs (AISC) to just one percent, reaching US$1,640 per ounce. The company’s managed operations actually saw a two percent decrease in both total cash costs and AISC per ounce.
The strong financial performance has allowed the company to significantly strengthen its balance sheet, with adjusted net debt falling 60 percent year-on-year to US$525million. The adjusted net debt to adjusted EBITDA ratio improved to 0.15 times from 0.86 times in Q1 2024.
In line with its recently updated dividend policy, AngloGold Ashanti declared an interim dividend of 12.5 US cents per share for the quarter. The new policy targets a 50 percent payout of annual free cash flow, with a minimum base dividend of US$0.50 per share annually.
The company has reaffirmed its full-year guidance for 2025, projecting gold production between 2.9 million and 3.225 million ounces with all-in sustaining costs between US$1,580 and US$1,705 per ounce.
AngloGold Ashanti continues to refine its portfolio, having recently sold its Doropo and ABC Projects in Ivory Coast as it seeks to focus on existing operations and projects in the United States.
Industry analysts note that the company’s performance reflects both the strength of the current gold market and successful integration of new assets, though challenges remain in managing costs amid ongoing global inflation and addressing production declines at some operations.
Payment of the declared dividend to shareholders will commence on June 13, 2025, with the record date set for May 30, 2025.
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