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Can Sukari Power the Next Phase of Growth at AngloGold Ashanti?
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Key Takeaways
AngloGold Ashanti's Q2 gold production rose 21% year over year to 804,000 ounces.
Sukari contributed 129,000 ounces in Q2, lifting its H1 total to 246,000 ounces.
AU reaffirmed 2025 output guidance of 2.93-225M ounces, up 9-21% year over year.
AngloGold Ashanti PLC (AU - Free Report) delivered a 21% year-over-year increase in gold production in the second quarter of 2025, reaching 804,000 ounces. This outscores the solid first-quarter performance of 720,000 ounces, which was AU’s best first-quarter gold production since 2020. The solid performance in both quarters this year was attributed to the company’s newly acquired Sukari mine as well as upbeat performance across other key assets.
Sukari, a large-scale, long-life, world-class Tier 1 asset, was added to AngloGold Ashanti’s portfolio following the takeover of Centamin in November. The mine contributed 117,000 ounces of gold to AU’s total production in the first quarter and 129,000 ounces in the second quarter. This brings Sukari’s half-yearly total gold production to 246,000 ounces, delivering a 9% improvement year over year, aided by higher float feed grades and improved plant recoveries.
Sukari now accounts for 16% of AU’s production total, establishing its role as one of the top producers in its portfolio. It is just behind the Geita operations, which have been the topmost contributor so far this year. Geita has produced 254,000 ounces of gold in the first half of 2025, or 17% of the company’s total. Sukari is expected to deliver up to 500,000 ounces of gold annually. 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.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) (B - Free Report) saw a 15.9% decline in the second-quarter gold production to 797,000 ounces. This follows a 19% year-over-year drop in first-quarter gold production to 758,000 ounces. This brings Barrick Mining’s half-yearly total to 1,555,000 ounces, down 17.6% year over year.
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. Also, lower output at Carlin due to the planned shutdown at the Gold Quarry roaster impacted the numbers. Barrick Mining maintains its 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 - Free Report) reported a 3% dip in second-quarter gold production to 8,66,029 ounces. Agnico Eagle has produced 17,39,823 ounces of gold so far in 2025, a 2% drop from the year-ago comparable period.
Gold output for both periods was down due to lower production from Meadowbank (longer-than-expected Caribou migration affecting both mining and milling operations), Fosterville (lower grade and throughput) and Canadian Malartic (lower throughput), partially offset by higher production at Macassa and LaRonde (higher grades).
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 135.3% year to date, outperforming the Zacks Mining – Gold industry’s 72.2% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
Image Source: Zacks Investment Research
AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 10.12X, a discount to the industry average of 13.45X. The stock has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AU’s 2025 sales is $9.01 billion, indicating 55.6% year-over-year growth. The consensus mark for the year’s earnings is $4.96 per share, indicating year-over-year growth of 124%. The Zacks Consensus Estimate for 2026 sales implies 2.82% year-over-year growth. The same for earnings indicates a decline of 7%.
While the EPS estimates for 2025 have moved down over the past 60 days, the same for 2026 has gone up, as seen in the chart below.
Image: Bigstock
Can Sukari Power the Next Phase of Growth at AngloGold Ashanti?
Key Takeaways
AngloGold Ashanti PLC (AU - Free Report) delivered a 21% year-over-year increase in gold production in the second quarter of 2025, reaching 804,000 ounces. This outscores the solid first-quarter performance of 720,000 ounces, which was AU’s best first-quarter gold production since 2020. The solid performance in both quarters this year was attributed to the company’s newly acquired Sukari mine as well as upbeat performance across other key assets.
Sukari, a large-scale, long-life, world-class Tier 1 asset, was added to AngloGold Ashanti’s portfolio following the takeover of Centamin in November. The mine contributed 117,000 ounces of gold to AU’s total production in the first quarter and 129,000 ounces in the second quarter.
This brings Sukari’s half-yearly total gold production to 246,000 ounces, delivering a 9% improvement year over year, aided by higher float feed grades and improved plant recoveries.
Sukari now accounts for 16% of AU’s production total, establishing its role as one of the top producers in its portfolio. It is just behind the Geita operations, which have been the topmost contributor so far this year. Geita has produced 254,000 ounces of gold in the first half of 2025, or 17% of the company’s total.
Sukari is expected to deliver up to 500,000 ounces of gold annually. 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.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) (B - Free Report) saw a 15.9% decline in the second-quarter gold production to 797,000 ounces. This follows a 19% year-over-year drop in first-quarter gold production to 758,000 ounces. This brings Barrick Mining’s half-yearly total to 1,555,000 ounces, down 17.6% year over year.
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. Also, lower output at Carlin due to the planned shutdown at the Gold Quarry roaster impacted the numbers.
Barrick Mining maintains its 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 - Free Report) reported a 3% dip in second-quarter gold production to 8,66,029 ounces. Agnico Eagle has produced 17,39,823 ounces of gold so far in 2025, a 2% drop from the year-ago comparable period.
Gold output for both periods was down due to lower production from Meadowbank (longer-than-expected Caribou migration affecting both mining and milling operations), Fosterville (lower grade and throughput) and Canadian Malartic (lower throughput), partially offset by higher production at Macassa and LaRonde (higher grades).
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 135.3% year to date, outperforming the Zacks Mining – Gold industry’s 72.2% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
Image Source: Zacks Investment Research
AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 10.12X, a discount to the industry average of 13.45X. The stock has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AU’s 2025 sales is $9.01 billion, indicating 55.6% year-over-year growth. The consensus mark for the year’s earnings is $4.96 per share, indicating year-over-year growth of 124%. The Zacks Consensus Estimate for 2026 sales implies 2.82% year-over-year growth. The same for earnings indicates a decline of 7%.
While the EPS estimates for 2025 have moved down over the past 60 days, the same for 2026 has gone up, as seen in the chart below.
Image Source: Zacks Investment Research
AU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.