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ARMN vs. AU: Which Gold Mining Stock is the Better Pick Now?
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Key Takeaways
ARMN targets 500,000 ounces annually from Segovia and Marmato with major expansions underway.
AU is advancing growth with acquisitions, asset sales and development of key mines like Obuasi.
Both companies maintain solid liquidity positions to fund projects despite rising operating costs.
Aris Mining Corporation (ARMN - Free Report) and AngloGold Ashanti PLC (AU - Free Report) are gold miners with operations and projects in Latin America. While Aris Mining is more concentrated in Colombia, AngloGold Ashanti, which operates across multiple continents, has exposure to the South American country through its greenfield projects. Although gold prices have fallen from their April 2025 peak, they remain favorable, aided by geopolitical tensions, and are currently hovering near the $3,400 per ounce level. Against this backdrop, comparing these two gold producers is particularly relevant for investors seeking growth-oriented exposure to gold.
Gold prices have rallied roughly 29% this year, largely attributable to aggressive trade policies, including President Donald Trump’s sweeping new import tariffs that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal skyrocketed to a record high of $3,500 per ounce on April 22. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally.
Let’s dive deep and closely compare the fundamentals of these two gold companies to determine which one is a better investment now.
The Case for Aris Mining
ARMN is rapidly establishing itself as a formidable player in the Latin American gold mining sector. Since its inception in September 2022, the company has demonstrated a strong blend of operational efficiency and strategic expansion. Aris Mining reported a solid 20% year-over-year increase in gold production to 58,652 ounces for the second quarter of 2025. This growth, powered by the Segovia Operations in Colombia, positions ARMN favorably to achieve its full-year production target of 230,000-275,000 ounces.
The Segovia Operations in Colombia, a cornerstone of Aris Mining's portfolio, is a key contributor to its production upside. ARMN is advancing its expansion projects, which are expected to further drive its output.
Production rates are expected to crank up in the second half of 2025, following the recent completion of the installation and commissioning of the Segovia plant expansion, which would lead to an increase in Segovia's processing capacity by 50% to 3,000 tons per day. Segovia is expected to produce 210,000-250,000 ounces this year and 300,000 ounces in 2026. At the Marmato Lower Mine, construction is progressing, targeting a processing capacity of 5,000 tons per day, with the ramp-up scheduled to start during the back half of 2026. ARMN is targeting an annual production rate of roughly 500,000 ounces of gold from Segovia Operations and Marmato Complex.
Aris Mining also holds a 51% stake in the Soto Norte project in Colombia and fully owns the Toroparu project in Guyana, further diversifying its asset portfolio. A pre-feasibility study is underway at Soto Norte with an expected completion in the third quarter of 2025. At Toroparu, the company has launched a new study to update the development plan. As ARMN progresses with its expansion initiatives, it is well-placed to achieve its ambitious production target and strengthen its standing in the Latin American gold mining industry.
Aris Mining boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. The company ended the second quarter with a healthy cash balance of roughly $310 million. In the second quarter, the company generated $73.8 million in cash flow after accounting for sustaining capital and income taxes, allowing it to fund its strategic growth and expansion initiatives. ARMN does not currently pay out a dividend.
ARMN, however, reported an increase in its second-quarter all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. The Segovia Operations reported AISC of $1,681 per ounce, up from $1,570 per ounce in the prior quarter and $1,571 per ounce in the year-ago quarter, partly driven by higher sustaining capital expenditures, indicating a deterioration of cost efficiency. Consolidated AISC increased around 6% year over year to roughly $1,787 per ounce.
The year-over-year upside in ARMN’s costs in the second quarter stemmed from higher costs in purchased mill feed from Contract Mining Partners (CMPs), increased royalty and social contributions costs, and the impact of an uptick in mining costs. ARMN’s AISC escalation reveals a concerning cost trend. The high inflation rates in Colombia affect Aris Mining’s operating costs. Higher reliance on CMPs has also led to increased costs.
The Case for AngloGold Ashanti
AngloGold Ashanti 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.
AU’s gold production increased 21% year over year to 804,000 ounces in the second quarter of 2025. Production for 2025 is projected at 2.9-3.225 million ounces, implying year-over-year growth of 9-21%. 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% while AISC per ounce increased 7%.
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 Mineracao 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 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.
AngloGold Ashanti ended the second quarter with $3.4 billion in liquidity, including cash and cash equivalents of $2 billion. Free cash flow soared 149% year over year to $535 million in the quarter. It has managed to lower its adjusted net debt by 92% year over year to $92 million at the second-quarter end. Its long-term debt-to-capitalization is around 17.8% compared with ARMN’s 28.9%.
AU offers a healthy dividend yield of 5.9% at the current stock price. Its payout ratio is 14% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a solid five-year annualized dividend growth rate of roughly 30.2%.
Price Performance and Valuation of ARMN & AU
Year to date, Aris Mining stock has shot up 127.1%, while AngloGold Ashanti stock has rallied 140% compared with the Zacks Mining – Gold industry’s increase of 78.8%.
Image Source: Zacks Investment Research
Aris Mining is currently trading at a forward 12-month earnings multiple of 5.62. This represents a roughly 59.5% discount when stacked up with the industry average of 13.86X.
Image Source: Zacks Investment Research
AngloGold Ashanti is trading at a premium to Aris Mining. The AU stock is currently trading at a forward 12-month earnings multiple of 11.72, below the industry.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for ARMN & AU?
The Zacks Consensus Estimate for ARMN’s 2025 sales and EPS implies a year-over-year rise of 64.5% and 205.9%, respectively. The EPS estimates for 2025 have been trending lower over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for AU’s 2025 sales and EPS implies year-over-year growth of 55.6% and 124.4%, respectively. The EPS estimates for 2025 have been trending southward over the past 60 days.
Image Source: Zacks Investment Research
ARMN & AU: Which Stock Should You Bet on Now?
Both Aris Mining and AngloGold Ashanti are well-positioned to leverage the current favorable gold price environment. Both remain focused on executing development projects to beef up production and have solid financial health and growth prospects. On the flip side, both are facing headwinds from higher costs. AngloGold Ashanti’s healthy dividend yield and solid dividend growth rate suggest that it may offer better investment prospects in the current market environment. AU’s lower leverage also suggests lesser financial risks. Investors seeking exposure to the gold space might consider AU as the more favorable option at this time.
Image: Bigstock
ARMN vs. AU: Which Gold Mining Stock is the Better Pick Now?
Key Takeaways
Aris Mining Corporation (ARMN - Free Report) and AngloGold Ashanti PLC (AU - Free Report) are gold miners with operations and projects in Latin America. While Aris Mining is more concentrated in Colombia, AngloGold Ashanti, which operates across multiple continents, has exposure to the South American country through its greenfield projects. Although gold prices have fallen from their April 2025 peak, they remain favorable, aided by geopolitical tensions, and are currently hovering near the $3,400 per ounce level. Against this backdrop, comparing these two gold producers is particularly relevant for investors seeking growth-oriented exposure to gold.
Gold prices have rallied roughly 29% this year, largely attributable to aggressive trade policies, including President Donald Trump’s sweeping new import tariffs that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal skyrocketed to a record high of $3,500 per ounce on April 22. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally.
Let’s dive deep and closely compare the fundamentals of these two gold companies to determine which one is a better investment now.
The Case for Aris Mining
ARMN is rapidly establishing itself as a formidable player in the Latin American gold mining sector. Since its inception in September 2022, the company has demonstrated a strong blend of operational efficiency and strategic expansion. Aris Mining reported a solid 20% year-over-year increase in gold production to 58,652 ounces for the second quarter of 2025. This growth, powered by the Segovia Operations in Colombia, positions ARMN favorably to achieve its full-year production target of 230,000-275,000 ounces.
The Segovia Operations in Colombia, a cornerstone of Aris Mining's portfolio, is a key contributor to its production upside. ARMN is advancing its expansion projects, which are expected to further drive its output.
Production rates are expected to crank up in the second half of 2025, following the recent completion of the installation and commissioning of the Segovia plant expansion, which would lead to an increase in Segovia's processing capacity by 50% to 3,000 tons per day. Segovia is expected to produce 210,000-250,000 ounces this year and 300,000 ounces in 2026. At the Marmato Lower Mine, construction is progressing, targeting a processing capacity of 5,000 tons per day, with the ramp-up scheduled to start during the back half of 2026. ARMN is targeting an annual production rate of roughly 500,000 ounces of gold from Segovia Operations and Marmato Complex.
Aris Mining also holds a 51% stake in the Soto Norte project in Colombia and fully owns the Toroparu project in Guyana, further diversifying its asset portfolio. A pre-feasibility study is underway at Soto Norte with an expected completion in the third quarter of 2025. At Toroparu, the company has launched a new study to update the development plan. As ARMN progresses with its expansion initiatives, it is well-placed to achieve its ambitious production target and strengthen its standing in the Latin American gold mining industry.
Aris Mining boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. The company ended the second quarter with a healthy cash balance of roughly $310 million. In the second quarter, the company generated $73.8 million in cash flow after accounting for sustaining capital and income taxes, allowing it to fund its strategic growth and expansion initiatives. ARMN does not currently pay out a dividend.
ARMN, however, reported an increase in its second-quarter all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. The Segovia Operations reported AISC of $1,681 per ounce, up from $1,570 per ounce in the prior quarter and $1,571 per ounce in the year-ago quarter, partly driven by higher sustaining capital expenditures, indicating a deterioration of cost efficiency. Consolidated AISC increased around 6% year over year to roughly $1,787 per ounce.
The year-over-year upside in ARMN’s costs in the second quarter stemmed from higher costs in purchased mill feed from Contract Mining Partners (CMPs), increased royalty and social contributions costs, and the impact of an uptick in mining costs. ARMN’s AISC escalation reveals a concerning cost trend. The high inflation rates in Colombia affect Aris Mining’s operating costs. Higher reliance on CMPs has also led to increased costs.
The Case for AngloGold Ashanti
AngloGold Ashanti 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.
AU’s gold production increased 21% year over year to 804,000 ounces in the second quarter of 2025. Production for 2025 is projected at 2.9-3.225 million ounces, implying year-over-year growth of 9-21%. 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% while AISC per ounce increased 7%.
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 Mineracao 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 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.
AngloGold Ashanti ended the second quarter with $3.4 billion in liquidity, including cash and cash equivalents of $2 billion. Free cash flow soared 149% year over year to $535 million in the quarter. It has managed to lower its adjusted net debt by 92% year over year to $92 million at the second-quarter end. Its long-term debt-to-capitalization is around 17.8% compared with ARMN’s 28.9%.
AU offers a healthy dividend yield of 5.9% at the current stock price. Its payout ratio is 14% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a solid five-year annualized dividend growth rate of roughly 30.2%.
Price Performance and Valuation of ARMN & AU
Year to date, Aris Mining stock has shot up 127.1%, while AngloGold Ashanti stock has rallied 140% compared with the Zacks Mining – Gold industry’s increase of 78.8%.
Aris Mining is currently trading at a forward 12-month earnings multiple of 5.62. This represents a roughly 59.5% discount when stacked up with the industry average of 13.86X.
AngloGold Ashanti is trading at a premium to Aris Mining. The AU stock is currently trading at a forward 12-month earnings multiple of 11.72, below the industry.
How Does Zacks Consensus Estimate Compare for ARMN & AU?
The Zacks Consensus Estimate for ARMN’s 2025 sales and EPS implies a year-over-year rise of 64.5% and 205.9%, respectively. The EPS estimates for 2025 have been trending lower over the past 60 days.
The consensus estimate for AU’s 2025 sales and EPS implies year-over-year growth of 55.6% and 124.4%, respectively. The EPS estimates for 2025 have been trending southward over the past 60 days.
ARMN & AU: Which Stock Should You Bet on Now?
Both Aris Mining and AngloGold Ashanti are well-positioned to leverage the current favorable gold price environment. Both remain focused on executing development projects to beef up production and have solid financial health and growth prospects. On the flip side, both are facing headwinds from higher costs. AngloGold Ashanti’s healthy dividend yield and solid dividend growth rate suggest that it may offer better investment prospects in the current market environment. AU’s lower leverage also suggests lesser financial risks. Investors seeking exposure to the gold space might consider AU as the more favorable option at this time.
ARMN currently carries a Zacks Rank #5 (Strong Sell), while AU has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.