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AngloGold's gross profit skyrockets by over 177% in Q1 2025
AngloGold's gross profit skyrockets by over 177% in Q1 2025
By: Nii Ammui Fio | 2 mins read
AngloGold Ashanti recorded an impressive 177.81% surge in gross profit for the first quarter of 2025, raking in $839 million compared to $302 million during the same period last year.
The remarkable performance was propelled by a boost in gold production, disciplined cost controls, and a stronger average gold price, which soared to $2,874 per ounce from $2,063 per ounce in Q1 2024.
"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.”
Total gold output for the group climbed by 22% year-on-year to 720,000 ounces, driven largely by the first full-quarter contribution from the newly acquired Sukari Gold Mine in Egypt.
Production also expanded significantly at sites such as Siguiri and Tropicana, which posted gains of 32,000 ounces and 21,000 ounces respectively. These improvements were marginally offset by declines at Iduapriem and Serra Grande.
Pre-tax profit increased more than fourfold, rising from $167 million in Q1 2024 to $729 million in Q1 2025. Similarly, profit attributable to equity shareholders saw an almost eightfold jump. The company’s free cash flow leapt to $403 million, a 607% increase from the $57 million reported in the prior-year quarter.
“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 noted.
Despite inflationary trends and higher royalty costs linked to the elevated gold price, the company’s total cost of sales rose moderately from $949 million to $1.23 billion. However, it managed to reduce total cash costs per ounce across its managed operations by 2%, from $1,232/oz to $1,213/oz, thanks in part to the integration of Sukari and improved efficiencies at Siguiri.
On the other hand, non-managed joint ventures, including Kibali, saw costs rise sharply—up 59% to $1,325 per ounce.
Operating cash flow also posted strong growth, increasing by 188% to reach $725 million, up from $252 million in Q1 2024. The uptick was fueled by improved gold pricing and higher sales volumes, though partially offset by increased operational costs and taxes.
In a move to streamline its portfolio and concentrate on core operations, particularly in the United States, AngloGold Ashanti recently completed the sale of its Doropo and ABC Projects in Côte d’Ivoire.
Ashanti Gold Q1 2025 Earnings ReleaseDownload
