AngloGold Ashanti PLC (AU Quick QuoteAU - Free Report) and Kinross Gold (KGC Quick QuoteKGC - Free Report) are two prominent gold producers, each with a diversified portfolio of mines across multiple continents.

Although gold prices recently retreated to $3,320 per ounce on easing geopolitical concerns and a stronger U.S. dollar ahead of the Federal Reserve’s Jackson Hole symposium, the metal has still advanced 26% year to date. The gains so far have been supported by safe-haven demand, heightened geopolitical risks and trade tensions. Looking ahead, central bank buying, as well as expanding industrial use in energy, healthcare and technology, should continue to underpin prices.

For investors seeking to ride this momentum, the question is: which stock offers better value? Let’s examine the fundamentals, growth prospects and challenges for AngloGold Ashanti and Kinross Gold.

The Case for AngloGold Ashanti

AngloGold Ashanti, headquartered in South Africa, has operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo (DRC), Egypt, Ghana, Guinea and Tanzania. In November 2024, it bolstered its asset base with the acquisition of Egyptian gold producer Centamin, adding the large-scale, long-life, world-class Tier 1 Sukari mine, which has the potential to produce 500,000 ounces annually.

In the second quarter of 2025, AU’s gold production increased 21% year over year to 804,000 ounces. This was aided by a contribution of 129,000 ounces from the Sukari mine, as well as upbeat performances at Obuasi, Geita, Cerro Vanguardia, Cuiabá and Siguiri. 

Production for 2025 is projected at 2.9-3.225 million ounces, implying year-over-year growth of 9-21%. However, for 2026, the company expects similar output levels to those in 2025.

Gold revenues in the second quarter were up 78% to $2.4 billion due to higher sales volumes and prices. However, these gains were partially offset by higher total operating costs, including increased royalty expenses and costs associated with the initial inclusion of Sukari, elevated costs related to legacy TSFs and higher costs relating to mining contractor rate adjustments.

Total cash costs per ounce for the group were up 8% to $1,226. All-in-sustaining costs (AISC) per ounce increased 7% to $1,666. Earnings per share increased 108% to $1.25 in the quarter. 

Free cash flow soared 149% year over year to $535 million in the second quarter. AngloGold Ashanti ended the second quarter of 2025 with $3.4 billion in liquidity, including cash and cash equivalents of $2 billion. It has managed to lower its adjusted net debt by 92% year over year to $92 million at the second-quarter end. The adjusted net debt to adjusted EBITDA ratio improved to 0.02X in the second quarter from 0.62X in the year-ago quarter.

AngloGold Ashanti remains focused on its Full Asset Potential program to offset the inflationary impacts. The company is executing a clear strategy of organic and inorganic growth. It recently inked a deal to acquire Augusta Gold Corp. to boost its footprint in the Beatty District of Nevada. 

It is also intensifying its efforts to streamline operations and sharpen its focus on core assets, particularly in the United States. AU recently inked a deal to sell its interest in the Mineração Serra Grande mine in Brazil (one of its higher-cost assets) following the sale of its interests in two gold projects in Côte d’Ivoire. AU also divested its stake in Canada’s G2 Goldfields.

Obuasi remains a significant pillar of its long-term strategy. The company’s focus this year is to continue the implementation of the underhand drift and fill (UHDF) mining method and make stoping improvements. This important orebody is expected to deliver 400,000 ounces of annual production at competitive costs by 2028. 

At Siguiri, efforts are underway to improve mining volumes through ongoing improvements to fleet availability and utilization, and to introduce gravity recovery in the processing plant to further improve metallurgical recovery. 

The Case for Kinross

Kinross Gold, based in Canada, has operations and development projects in the United States, Canada, Brazil, Chile and Mauritania.  
Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. 

Tasiast and Paracatu remain the key anchors to cash flow generation and production. Tasiast is the lowest-cost asset within its portfolio, with consistently strong performance. Paracatu continues to deliver strong performance, with second-quarter 2025 production rising on higher grades and improved mill recoveries, making it the highest-producing mine in the company’s portfolio. 

The company produced 512,574 gold equivalent ounces in the reported quarter, down 4.3% year over year. Higher production from Fort Knox, with the commencement of higher-grade, higher-recovery ore feed from Manh Choh in the second half of 2024, and higher production from Paracatu, was offset by lower production from Tasiast and Round Mountain, per plan.

Kinross’s second-quarter 2025 revenues rose nearly 41.7% year over year to $1.73 billion. The company reported adjusted earnings of 44 cents per share compared with the prior-year quarter’s figure of 14 cents.

KGC has a strong liquidity position and generates substantial cash flows, which allow it to finance its development projects, pay down debt and drive shareholder value. The company ended the second quarter with solid liquidity of roughly $2.8 billion. Second-quarter free cash flow surged roughly 87% year over year to a record $647 million, driven by the strength in gold prices and strong operating performance.  

The company has also been lowering debt levels, ending the second quarter with a total debt to total capital ratio of 0.14.

How do Estimates Compare for AU & KGC?

The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 earnings is $4.96 per share, indicating year-over-year growth of 124.43%. The earnings estimate of $4.61 for 2026, however, implies a 7.12% dip. However, revision activity remains mixed, with the EPS estimates for 2025 moving down over the past 60 days, while the same for 2026 has moved up.

The Zacks Consensus Estimate for Kinross Gold’s earnings for 2025 is $1.38 per share, indicating a year-over-year jump of 103%. The 2026 estimate of $1.41 implies growth of 2.22%. The estimates have been trending north over the past 60 days.

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AU & KGC: Price Performance & Valuation Comparisons

In the past six months, AU stock has gained 64.8% while KGC has gained 70.5%. 

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AU is currently trading at a forward 12-month earnings multiple of 11.01X, higher than its five-year median. KGC is currently trading at a forward 12-month earnings multiple of 13.40X, higher than its five-year median.

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AU or KGC: Which is the Better Pick?

Both AngloGold Ashanti and Kinross Gold are well-positioned to benefit from the ongoing rally in gold prices, along with their efforts to grow their production capabilities.

Kinross Gold has delivered a stronger year-to-date price performance compared with AngloGold Ashanti. Also, its premium valuation appears justified given its robust project pipeline, earnings growth projections and consistent estimate revision activity. 

Given these factors, Kinross Gold, which currently sports a Zacks Rank #1 (Strong Buy) and a Value Score of B, appears to be a more compelling investment choice than AngloGold Ashanti, which has a Zacks Rank #3 (Hold) and a Value Score of B. You can see the complete list of today’s Zacks #1 stocks here.