Sukari Gold Mine Production Falls 3% in Q1 as Egypt’s Royalty Revenues Rise to $15 Million

Gold production at Egypt’s Sukari Gold Mine declined by 3% during the first quarter of 2026, reaching approximately 113,000 ounces, compared to around 117,000 ounces in the same period last year, according to the financial results of AngloGold Ashanti, the operator of the mine.

The company attributed the decline in production to a 27% drop in the average recovered gold grade, driven by lower ore grades extracted from underground mining operations, despite a 10% increase in processed ore volumes during the same period.

Meanwhile, the total cash cost of gold production surged to $1,106 per ounce in the first quarter of 2026, up from $826 per ounce in the corresponding period of 2025, marking an annual increase of 34%.

The company said higher operating costs were mainly driven by lower production levels, drawdowns from metal inventories, and increased royalty payments linked to rising global gold prices, in addition to higher labor, mining contractor, and maintenance costs.

Royalty payments made by the Sukari Mine to the Egyptian government also rose to approximately $15 million during the first quarter of this year, compared with $10 million in the same period last year, supported by the strong rise in gold prices.

The royalty represents 3% of the mine’s sales revenue and is paid separately from Egypt’s share of the project’s profits, which has not been disclosed.

At the same time, the mine’s gold revenues climbed to nearly $499 million during the first quarter of 2026, compared with $330 million in the same period last year, while the company’s investments in Egypt increased to $67 million, up from $59 million in the first quarter of 2025.