The production cost per ounce of gold at Egypt’s Sukari Mine surged by approximately $280 during the first quarter of 2026, reaching $1,106 per ounce. This represents a 34% annual increase compared to $826 per ounce during the same period in 2025, according to the financial results released by the operator, AngloGold Ashanti.
The company attributed the rise in total cash costs to several key factors:
Lower production rates.
Drawdowns from metal inventories.
Higher royalties driven by the strong rally in global gold prices.
Increased labor costs, mining contractor fees, and maintenance expenses.
Production Trends
Gold production at the Sukari Mine declined by 3% in Q1 2026, recording approximately 113,000 ounces, down from 117,000 ounces in the corresponding period last year.
The company clarified that this dip was primarily due to a 27% decrease in the average recovery grade, resulting from lower ore grades in underground mining operations. This occurred despite a 10% increase in the volume of ore processed during the same timeframe.
Revenue and Government Royalties
Despite lower production and rising operational costs, the mine’s gold revenue climbed to approximately $499 million in Q1 2026, up from $330 million in Q1 2025. This growth was fueled by record-breaking global gold prices.
Furthermore, royalties paid to the Egyptian government rose to approximately $15 million this quarter, compared to $10 million in the previous year.
Note: Royalties are calculated at a fixed rate of 3% of total sales. This is paid to the Egyptian government separately from its share of the project's profits (which were not disclosed in this report).
Capital Investment
AngloGold Ashanti increased its investments in Egypt to approximately $67 million during the first quarter of 2026, up from $59 million in the same period last year. These investments are part of the ongoing plans to develop mining operations and boost production capacity at the Sukari Mine.
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