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Al-Ahram Weekly
5 days ago
- Business
- Al-Ahram Weekly
Unleashing mining potential - Economy - Al-Ahram Weekly
Egypt's mining sector has recently been in the limelight with a set of new exploration agreements and production increases, not only for gold, which is the most actively looked for mineral, but also phosphates and iron and other lesser-known minerals to the public like white sand. The Egypt Mining Forum 2025, which took place last week, saw agreements finalised for more gold exploration with AngloGold Ashanti, which bought Centamin and is now the operator of the Sukari Gold Mine, as well as Canada's Barrick Mining Corporation. 'Egypt is open to all forms of investment, with a particular focus on empowering Egyptian, regional, and international investors, and we stand ready to allocate additional areas for exploration and prospecting across all mineral types, reaffirming our unwavering commitment to expanding growth opportunities within the mining sector,' Minister of Petroleum and Mineral Resources Karim Badawi said. A $658 million phosphoric acid complex is currently under construction in the New Valley governorate due to a contract between a consortium of Egyptian companies and two Chinese entities. Phosphoric acid is used in many industries, the most important of which is fertilisers. The complex has an estimated production capacity of 900,000 tons annually. 'This clearly demonstrates the strong desire of international companies to expand their investments in the Egyptian mining sector, which serves as proof of major international companies' confidence in Egypt's investment climate, reflecting the success of the state's policy in attracting foreign investments,' Badawi said. Egypt recorded $446 million in revenues from mineral wealth development in the 2025 year to date, marking a 131 per cent increase compared to the previous year, Badawi told the forum attendees. The increased interest follows government efforts to streamline the sector by amending the mining law and introducing investment-friendly changes in the formula of sharing costs and profits with explorers. The most recent move was parliament's approval of a bill changing the status of the Egyptian Mineral Resources Authority (EMRA) to that of an economic authority with its own independent budget. The draft law establishes a regulatory framework modeled after the structure of Egypt's General Petroleum Corporation (EGPC), with the goal of simplifying procedures and improving flexibility so that mineral resources can be developed more efficiently and competitively. 'The swift alignment of the mining legislation with international best practice demonstrates unprecedented institutional collaboration. The unified commitment across Government, Parliament, and industry to defined timelines has enabled us to enact critical reforms that will drive sustainable growth in Egypt's mining sector,' said Hoda Mansour, Managing Director and Vice Chair of Sukari Gold Mines, representing AngloGold Ashanti during the forum. MP Mohamed Ismail, who submitted the demand to change the EMRA to an independent economic entity, noted that as a public service authority it is under fragmented oversight, reporting financially to the ministries of planning and finance and technically to the Ministry of Petroleum. This administrative and organisational distortion, he told the House of Representatives, has constrained the authority's performance and led to the mining sector contributing less than one per cent to the country's GDP. EMRA, now known as the Mineral Resources and Mining Industries Authority, will keep 65 per cent of its annual profits and transfer the remaining 35 per cent to the state treasury. Ismail expected the change to mark a turning point for the industry and to increase government revenues from LE2 billion to LE12 billion annually within seven years, raise the sector's GDP share to six per cent in five years, and boost exports from $1.5 billion to $7 billion within a decade. A closer look at the sector reveals that gold still attracts the lion's share of investment. A Fitch Solutions report issued early last year pointed out that in March 2021, the former minister of petroleum and mineral resources, Tarek Al-Molla, had announced that Egypt aimed to become a world-class mining hub, raising its mining exports to $10 billion by 2040, up from $1.6 in 2021. 'While we do not expect export growth to be as strong as these aims, gold production and exports have strong potential. The government is liberalising the gold sector in an attempt to encourage foreign investment, and we expect gold prices to remain high in the coming five years, which will encourage exploration and mine development,' the report noted. According to a government document cited by the news outlet Al-Arabiya, Egypt's gold sector has witnessed remarkable growth, with gold and precious stone exports surging by 74 per cent to reach $2.85 billion in the first 11 months of 2024, up from $1.64 billion during the same period in 2023. While steel makes a lot of news locally owing to the effect of price changes on the construction sector, little attention is given to the volume of production. Egypt, states the Fitch report, is emerging to be Africa's largest steel producer and second-largest producer in the Middle East and North Africa (MENA) region after Iran. Egypt's steel production continued to grow consistently throughout the Covid-19 pandemic, whereas most other countries experienced at least temporary contractions. Crude steel output reached 9.8 million tons in 2022, the second-largest in MENA after Iran. 'We forecast average annual growth of 1.5 per cent over the next decade as the government supports the industry to reduce reliance on imported steel,' Fitch said. During the period between 2019 and 2024, phosphate production saw the highest rate of growth, according to a report prepared by the Egypt Oil and Gas Group, with an annual average of eight million metric tons (mmt) compared to 3.92 mmt in 2019-2020. This reflects intensified mining activity, strategic investment, and strong export demand supporting Egypt's phosphate industry, it said. The Abu Tartur Plateau in the Western Desert is one of the largest and most promising deposits of phosphates, known for high-grade ore and substantial reserves. A detailed study titled 'Phosphate Mining in Egypt: Geology and Sustainable Development' by Mahmoud Zanaty, a geologist at US firm Haliburton, confirms that Egypt possesses four per cent of global phosphate deposits, totalling 2.78 billion tons, and produces six million tons annually, which accounts for three per cent of global output. Phosphates have diverse applications across several industries, creating vast investment opportunities. Industry observers say that in the light of the projected 25 per cent expansion in cultivated land over the next six years, there will be a higher demand for phosphate-based agricultural products, resulting in a vast domestic market. However, high production costs, especially in the Abu Tartour Plateau, which contains approximately one billion metric tons of reserves but with high impurities, represent a challenge for the sector. There is also fierce competition, especially from neighbouring African and Arab countries, such as Morocco, which has the world's largest phosphate reserves, Saudi Arabia, and Jordan. Other minerals highlighted by Egypt's Oil and Gas report showed declining or inconsistent trajectories during the five-year period. Iron production, which averaged 0.05 mmt, dropped sharply by 84 per cent and ceased entirely after 2020-21. 'Egypt's iron production declined sharply due to outdated machinery, heavy financial losses exceeding LE9 billion, inconsistent energy and raw material supplies, and a government decision to liquidate the Egyptian Iron and Steel Company,' the Fitch report said. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Can AngloGold's Cost Discipline Help It Maintain Edge Over Peers?
AngloGold Ashanti plc AU continues to navigate industry-wide inflationary pressures and manages to deliver resilient cost performance, backed by its Full Asset Potential (FAP) program and increased cost vigilance at the site level. AU reported a 4% year-over-year increase in group total cash costs to $1,223 per ounce in the first quarter of 2025. But digging deeper, the increase reflected a 5% rise in inflation across its operating jurisdictions and a 5% uptick in royalty costs linked to the higher gold prices. Overall, the company saw a 7% increase in market-driven costs. Managed operations saw a 2% year-over-year decline in total cash costs per ounce despite increases in royalties. This was driven by the inclusion of Sukari following the Centamin acquisition in November 2024 and steady performance at Siguiri. These gains were partially offset by operational challenges and a temporary plant stoppage at Iduapriem. Non-managed joint ventures experienced cost pressures, with total cash costs soaring 59% year over year to $1,325 per ounce. This was due to lower gold production, higher royalties and increased open pit volume-related operating costs at Kibali. All-in sustaining costs per ounce (AISC) for the group inched up 1% year over year to $1,640 per ounce in the quarter. At managed operations, AISC per ounce dipped 2% reflecting the positive impact of Sukari's inclusion, while AISC at non-managed joint ventures increased 37% due to weaker operational performance at Kibali. For 2025, AngloGold projects group total cash costs at $1,125-$1,225 per ounce, and AISC between $1,580 and $1,705 per ounce. Both ranges indicate a 2% increase at the midpoint from the year-ago reported levels. The company remains focused on improving its position on the cost curve, leveraging the FAP program to enhance operational efficiency and productivity offsetting inflationary impacts. Its cost management appears effective, with only a 1% rise in average real cash costs over the timeframe between first-quarter 2021 and first-quarter 2025. Its peer group, which includes major gold miners like Barrick Mining Corporation B and Newmont Corporation NEM, has seen a more than 20% spike in average real cash costs. Newmont's gold costs applicable to sales rose 16% year over year to $1,227 per ounce in the first quarter. AISC was $1,651 per ounce, reflecting a roughly 15% year-over-year increase. The rise was attributed to a decline in production due to non-core asset divestments as Newmont shifts its focus to Tier 1 assets. Barrick Mining saw a 22% sequential increase in AISC to $1,775 per ounce in the first quarter due to operational challenges, higher total cash costs per ounce and an uptick in mine site sustaining capital expenditure. Lower production due to the suspension of operations at Barrick's Loulo-Gounkoto mine also contributed to the rise. AU's Price Performance, Valuations & Estimates AngloGold Ashanti's stock has skyrocketed 104% year to date, outperforming the Zacks Mining – Gold industry's 53% growth. During this time, the Basic Materials sector has risen 13.7% and the S&P 500 has rallied 5.9%. AU is currently trading at a forward 12-month earnings multiple of 9.51X, at a discount to the industry average of 12.62X. The stock has a Value Score of B. The Zacks Consensus Estimate for AngloGold Ashanti's 2025 sales is $8.85 billion, indicating 52.8% year-over-year growth. The consensus mark for the year's earnings is $4.99 per share, indicating year-over-year growth of 125.8%. The Zacks Consensus Estimate for 2026 sales implies 2.3% year-over-year growth. The same for earnings indicates a decline of 1.3%. EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Zawya
10-07-2025
- Business
- Zawya
Egypt: House of Representatives greenlights Centamin's 30-year Sukari gold mine exploitation
Arab Finance: The Egyptian House of Representatives has finally approved the draft law on the exploitation of gold ore and related minerals in the Sukari gold mine, as per a statement. The draft law was submitted by the government to license the project for the Minister of Petroleum and Mineral Resources, in partnership with the Egyptian Mineral Resources Authority (EMRA) and Centamin. It grants Centamin the rights to make use of the Sukari area for a 30-year period. Accordingly, the company is fully commited to self-finance the project, without the state bearing any burdens. Also, Centamin shall carry out regular assessments of the environmental impact of its mineral activities, while complying with environmental protection, general health, and safety standards. The project aims to boost Egypt's economy, provide new jobs, and back the state's efforts to develop the mining sector. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Globe and Mail
04-07-2025
- Business
- Globe and Mail
Is AngloGold Ashanti on Track to Meet 2025 Production Targets?
AngloGold Ashanti PLC AU has kicked off 2025 on a high note, posting its best first-quarter gold production since 2020 and setting an optimistic tone for the rest of the year. Driven by the successful integration of a major acquisition and strong performance across several key operations, AU is firing on all cylinders and reaffirming its full-year outlook. AngloGold Ashanti's gold production increased 22% year over year to 720,000 ounces in the first quarter of 2025. This reflected the first full-quarter contribution from the recently acquired Sukari mine in Egypt. This large-scale, long-life, world-class Tier 1 asset, acquired through AngloGold Ashanti's November 2024 takeover of Centamin, added 117,000 ounces in the first quarter. Sukari is expected to deliver up to 500,000 ounces of gold annually. Broad-based strength across the company's portfolio added further momentum in the first quarter. Siguiri delivered a sharp turnaround in performance, producing 80,000 ounces in the first quarter, a 67% jump from the first quarter of 2024. This was driven by optimized carbon-assisted operations and increased plant stability, which enabled higher throughput and the strategic exclusion of Bidini ore from processing. Tropicana and Sunrise Dam bounced back with 40% and 9% output increases, respectively, from the rainfall disruptions in the year-ago quarter. Cerro Vanguardia saw a 12% rise in production on improved plant performance and higher grades, while Geita posted a modest 2% improvement. This broad-based operational strength highlights AngloGold Ashanti's success in integrating its newest asset and driving productivity gains across its established operations. The company affirmed its 2025 production guidance of 2.900-3.225 million ounces, suggesting year-over-year growth of 9-21%. Output in 2026 is expected to remain at similar levels. Mixed Performances for AngloGold Ashanti's Peers Looking across the competitive landscape, Barrick Mining Corporation B saw a 19% year-over-year drop in first-quarter gold production to 758,000 ounces. This downturn was primarily due to the suspension of operations at the Loulo-Gounkoto mine amid Barrick's dispute with the Malian government over dividing the economic benefits and lower output across Carlin and Cortez. Barrick provided a tepid forecast for 2025, with attributable gold production expected in the range of 3.15-3.5 million ounces, excluding production from Loulo-Gounkoto. Agnico Eagle Mines Limited AEM saw a modest year-over-year decline of around 0.5% to 873,794 ounces in the first quarter on lower output at Canadian Malartic. Agnico Eagle wrapped up the acquisition of O3 Mining during the first quarter, adding the Marban project, which is expected to contribute around 130,000 ounces of gold per year to the Canadian Malartic complex. Agnico Eagle remains on track to meet its 2025 gold production target of around 3.3-3.5 million ounces. AU's Price Performance, Valuations & Estimates AngloGold Ashanti stock has appreciated 102.4% year to date, outperforming the Zacks Mining – Gold industry's 55.1% growth. During this time, the Basic Materials sector has risen 13.8%, while the S&P 500 has gained 5.4%. AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 10.12X, at a discount to the industry average of 13.02X. The stock has a Value Score of B. The Zacks Consensus Estimate for AU's 2025 sales is $8.85 billion, indicating 52.8% year-over-year growth. The consensus mark for the year's earnings is $4.99 per share, indicating year-over-year growth of 125.8%. The Zacks Consensus Estimate for 2026 sales implies 2.28% year-over-year growth. The same for earnings indicates a decline of 1.3%. However, EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Egypt Today
16-05-2025
- Business
- Egypt Today
Egypt expands Sukari Gold Mine operations as part of national mining strategy
Centamin's Sukari mine in Red Sea governorate - Photo courtesy of Youssef el-Raghy, chairman of Centamin CAIRO – 16 May 2025: The Cabinet's Media Center released a video underscoring the importance of the Sukari Gold Mine, which it described as one of the largest gold mines in the world. The video detailed the mine's ongoing expansion operations in Egypt's Eastern Desert, aimed at increasing the gold reserves. It also emphasized that highly skilled Egyptian technical labor is working around the clock using the most advanced equipment globally to maximize production and ensure the highest quality standards. On Thursday, Prime Minister Mostafa Madbouly conducted an extensive field visit to the Sukari Gold Mine in the Marsa Alam area of the Eastern Desert. During the visit, he reviewed the various stages of gold ore production. The visit came to reflect the government's commitment to supporting and developing the mining sector and encouraging investment in this vital industry. Madbouly stressed the critical importance of the mineral wealth sector in Egypt. He noted the state's dedication to formulating a strategic plan for the development of this sector, under the directives of President Abdel Fattah El Sisi, with the goal of achieving the maximum possible economic return. According to him, a comprehensive roadmap has been established to implement this strategy, focusing on enhancing the performance of the mining sector, utilizing Egypt's diverse mineral resources, and expanding extractive industries.
