AngloGold Ashanti Ltd. posted a 764% surge in first-quarter profit, driven by a spike in gold prices and increased output from its expanded mining portfolio.
The London-headquartered miner reported attributable profit of US$443 million for Q1 2025, compared with US$58 million in the same period a year earlier.
Earnings per share climbed sharply to 88 cents, up from 14 cents in Q1 2024, representing a 529% increase, while free cash flow rose 607% to US$403 million, underscoring the company’s strengthened financial position.
“This is a very strong start to the year, particularly at our managed operations,” CEO Alberto Calderon said in a statement. “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.”
Gold output rose 22% to 720,000 ounces, led by a 28% rise at managed operations. A key driver was the first full-quarter contribution from Egypt’s Sukari Gold Mine, which added 117,000 ounces following its acquisition. Gains were also recorded at Siguiri (+32,000 oz) and Tropicana (+21,000 oz), though these were partially offset by lower production at Iduapriem (-22,000 oz) and Kibali (-13,000 oz).
The company realized an average gold price of US$2,874 per ounce, compared to US$2,063 a year earlier. This helped lift group gold income to US$1.93 billion, up from US$1.14 billion in Q1 2024.
Despite global inflationary pressure averaging 5% across operations, AngloGold kept its all-in sustaining costs (AISC) increase to just 1%, reaching US$1,640 per ounce. Notably, managed operations recorded a 2% decrease in both total cash costs and AISC.
Improved cash flow also enabled a substantial debt reduction, with adjusted net debt falling 60% to US$525 million. The net debt-to-EBITDA ratio improved to 0.15x, from 0.86x a year ago.
Under its revised dividend policy, the company declared an interim dividend of 12.5 US cents per share, reflecting a targeted 50% payout of annual free cash flow and a minimum base dividend of US$0.50 per share annually. The dividend will be paid on June 13, with a record date of May 30.
Full-year guidance remains unchanged, with projected gold production between 2.9 million and 3.225 million ounces and AISC forecasted between US$1,580 and US$1,705 per ounce.
AngloGold has also continued portfolio optimization, recently offloading its Doropo and ABC projects in Ivory Coast to prioritize growth in U.S.-based assets. While analysts praise the company’s performance and successful integration of Sukari, they caution about ongoing cost management challenges and underperformance at select sites.
Shares in AngloGold Ashanti rose in early trading following the earnings announcement.
