AngloGold Ashanti Delivers Eightfold Rise in Q1 Profit on Higher Gold Output and Prices
AngloGold Ashanti has reported a significant increase in earnings and free cash flow for the first quarter of 2025, driven by higher gold production, disciplined cost control, and a sustained surge in the gold price.
The Johannesburg and New York-listed miner generated $403 million in free cash flow in the three months to March 31 – a more than sevenfold increase from $57 million in the same period last year. Profit attributable to equity shareholders rose almost eightfold to $447 million, as headline earnings per share climbed to $0.88 from $0.14 in Q1 2024.
The performance was bolstered by a 28% year-on-year increase in gold production from managed operations, aided by the first full-quarter contribution from the newly acquired Sukari mine in Egypt, which added 117,000 ounces. Stronger operational delivery from assets such as Siguiri, Tropicana, and Obuasi also contributed to group production, which rose 22% to 720,000 ounces.
CEO Alberto Calderon said the quarter marked “a very strong start to the year,” highlighting the company’s success in controlling costs despite inflationary pressures and capitalising on the higher gold price, which averaged $2,874 per ounce up from $2,063 a year earlier.
Adjusted EBITDA surged 158% year-on-year to $1.12 billion, while the company’s net debt fell by 60% to $525 million. The balance sheet strengthening pushed AngloGold’s net debt-to-EBITDA ratio to 0.15x, compared with 0.86x in the previous year.
As part of a revised dividend framework, AngloGold declared an interim payout of 12.5 cents per share for the quarter, consistent with its new policy of distributing 50% of annual free cash flow, subject to leverage thresholds. A base dividend of $0.50 per share per annum has been instituted, with quarterly payments and a potential year-end top-up.
Cost performance remained stable despite inflationary headwinds and increased royalty payments. Group all-in sustaining costs (AISC) rose marginally by 1% to $1,640/oz, while total cash costs increased by 4% to $1,223/oz, impacted partly by higher sustaining capital and price index effects in key operating jurisdictions.
However, while managed operations posted a 2% decline in both cash costs and AISC, non-managed joint ventures faced setbacks. Lower grades at assets such as Iduapriem and Kibali resulted in a 17% decline in output and led to a sharp rise in per-ounce costs.
Total capital expenditure reached $336 million in Q1, a 27% increase year-on-year. Sustaining capex totalled $236 million, while $100 million was allocated to growth projects as the company seeks to extend mine life and enhance production across its portfolio.
