AngloGold Ashanti reports 671% increase in headline earnings in its first quarter for 2025
AngloGold Ashanti CEO Alberto Calderon said the gold mining group had performed very strong in its first quarter to March 31, 2025.
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AngloGold Ashanti's headline earnings soared by 671% to $447 million following a 22% increase in production in the first quarter to end March, good cost management and a rising gold price, the group said Friday.
In addition to these numbers that indicate a very strong performance, AISC (all-in sustaining costs) increased by only 1%, while free cash increased by 607% to $403m. The previous guidance for the remainder of the year was reaffirmed.
"This is a very strong start to the year, particularly at our managed operations," CEO Alberto Calderon said in a statement. An interim dividend of $63m or 12.5 US cents a share was declared for the first quarter, in line with the new quarterly dividend policy.
AngloGold's share price had traded higher by 2.94% on Friday afternoon to R808.88 per share, a price already 77.3% higher than a year ago.
The performance was supported by a 28% rise in gold production from managed operations year-on-year, primarily driven by the first-time contribution from the recently acquired Sukari Gold Mine in Egypt and solid output improvements at Siguiri and Tropicana.
The average gold price received increased to $2,874/oz in the first quarter, well up from $2,063/oz in the first quarter of 2024.
"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," said Calderon.
AngloGold Ashanti remained committed to closing the valuation gap with its North American peers by driving continuous improvements in operating performance, enhancing cash conversion, extending life-of-mine, and maintaining a disciplined approach to capital allocation.
Its portfolio continued to be actively managed to sharpen focus on its operations and projects in the US. Last week, the sale of the Doropo and ABC Projects in Ivory Coast was announced.
The balance sheet also continued to strengthen. Adjusted net debt fell 60% year-on-year to $525m in the first quarter, from $1.322 billion in the first quarter of 2024. There was about $3bn in liquidity, including cash and cash equivalents of $1.5bn, at quarter end.
Gold production for the group increased substantially by 22% year-on-year to 720 000 ounces, which reflected the first full-quarter contribution of 117 000 ounces from Sukari, Egypt's largest gold mine, and a 'notable uplift in consistency and reliability across the legacy portfolio,' said Calderon.
The strong result was driven by a strong performance from managed operations, partially offset by operating challenges at the non-managed joint ventures.
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