Production at the Sukari mine fell by 7.8%, while extraction costs surged by 36%.
Decline in Sukari Gold Production and Rising Extraction Costs
A recent report reveals a significant decline in gold production at the Sukari mine in Egypt. During the second quarter of 2026, production dropped by 7.8%, totaling 119,000 ounces compared to 129,000 ounces in the same period of 2025.
First Half Production Figures
In the first half of 2026, the total gold output reached 232,000 ounces. This figure marks a 6% decrease from the first half of 2025. The decline primarily stems from a reduction in the average grade of ore extracted from surface mining operations. However, the company partially offset this decrease by improving gold recovery rates at the processing plant.
Significant Increase in Production Costs
According to the published data, the total cash cost of production surged by 36%, rising to $1,020 per ounce from $750 in the same period last year. This increase highlights the growing operational pressures on the mine.
Higher Investments and Royalties
AngloGold Ashanti invested approximately $177 million in the Sukari mine during the first half of 2026. This investment represents a notable increase from the $125 million allocated in the same period of 2025. Additionally, the company paid royalties amounting to $30.8 million, up from $24 million last year. These royalties account for 3% of gold sales, alongside the government’s 50% share of profits.
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