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Should AU Stock Be Part of Your Portfolio Post Q3 Results?
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Key Takeaways
AngloGold Ashanti's Q3 gold output rose 17% y/y to 768,000 ounces.
Earnings per share climbed 136% to $1.32 on higher sales volumes and metal prices.
AU reaffirmed its 2025 output guidance of 2.9-3.225M ounces and reported a record cash flow.
AngloGold Ashanti PLC (AU - Free Report) shares gained a fresh 52-week high of $85.85 yesterday, fueled by strong third-quarter results on Tuesday. The company reported year-over-year improvements in its top and bottom lines. However, AU’s revenues and earnings missed the Zacks Consensus Estimate.
AngloGold Ashanti’s stock has skyrocketed 283.3% year to date, outperforming the Zacks Mining – Gold industry’s 125.2% upsurge. During this time, the Basic Materials sector has risen 25.3% and the S&P 500 has rallied 19.6%.
AngloGold Ashanti has also outpaced peers like Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines (AEM - Free Report) , which have surged 153.5% and 123.6%, respectively, so far this year.
Image Source: Zacks Investment Research
Let us take a closer look at AngloGold Ashanti’s third-quarter results to assess if this is the right time to buy AU shares.
AU Q3: Solid Earnings Growth Amid High Operating Costs
AngloGold Ashanti reported a 17% year-over-year increase in gold production to 768,000 ounces in the third quarter, driven by the contributions from the recently acquired Sukari mine. The upside was also fueled by solid performances from key assets like Obuasi, Kibali, Geita and Cuiabá. The increased production volumes along with higher metal prices led to a 9% year-over-year jump in its adjusted EBITDA to $1,56 million in the quarter.
Gold revenues surged 61.9% to $2.37 billion. The Zacks Consensus Estimate for the top-line was $2.53 billion. AngloGold Ashanti’s earnings per share skyrocketed 136% to $1.32 due to higher sales volumes and prices. Earnings also increased from $1.25 in the second quarter of 2025 but missed the Zacks Consensus Estimate of $1.34.
AU has been facing headwinds from higher operating costs for the last few quarters, which continued in the third quarter of 2025.
Total cash costs per ounce for the group were up 5% to $1,225. All-in-sustaining costs (AISC) per ounce increased 6% to $1,720. For managed operations, total cash costs rose 5% year over year to $1,244 per ounce, while AISC grew 6% to $1,766 per ounce. The upside was due to inflationary cost pressures from increased labor and mining contractor costs. However, the impacts on its earnings were offset by higher sales volumes and prices.
AngloGold Ashanti Reports Record Cash Flow in Q3
The company generated a record $920 million in free cash flow in the third quarter, a 141% year-over-year whopping rise. The adjusted net debt to adjusted EBITDA ratio improved to 0.09X in the third quarter from 0.37X in the year-ago quarter. AngloGold Ashanti ended the quarter with $3.9 billion in liquidity, including cash and cash equivalents of $2.5 billion.
AU Reaffirms 2025 Guidance
Gold production for 2025 is projected at 2.9-3.225 million ounces. This suggests year-over-year growth of 9-21%. For 2026, the company expects similar output levels to those in 2025.
AngloGold Ashanti Peers’ Q3 Performances
Newmont reported third-quarter 2025 adjusted earnings of $1.71 per share, up from 81 cents in the prior-year quarter. NEM’s revenues for the third quarter were $5.52 billion, up roughly 20% from $4.61 billion in the prior-year quarter. Both the top and bottom lines beat the Zacks Consensus Estimate.
Agnico Eagle Mines posted adjusted earnings of $2.16 per share for the third quarter of 2025, up from $1.14 in the year-ago quarter. Agnico Eagle Mines generated revenues of $3.06 billion, up 41.9% year over year. The top and bottom lines surpassed the Zacks Consensus Estimate.
In the July-September 2025 period, gold prices averaged around $3,500 per ounce, up 41% year over year. Starting at $3,300, gold surged to a high of $3,858.41 at the quarter’s end. This aided the upside of AU and its peers in the third quarter of 2025.
AngloGold Ashanti Sees Positive Estimate Revision Activity
The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 sales is $9.32 billion, indicating a 60.9% year-over-year jump. The consensus mark for the year’s earnings is pegged at $5.80 per share, indicating a year-over-year upsurge of 162.4%.
The Zacks Consensus Estimate for 2026 sales implies a 0.6% year-over-year dip. The same for earnings suggests growth of 11.4%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
EPS estimates for 2025 have moved 9.2% north over the past 60 days, while the same for 2026 has moved up 30.6% over the past 60 days.
Image Source: Zacks Investment Research
AU Stock Trades at a Premium
AngloGold Ashanti’s stock is currently trading at a forward 12-month earnings multiple of 13.36X, which is only slightly higher than the industry average of 13.35X. Considering AU's growth prospects, its premium valuation is warranted.
Image Source: Zacks Investment Research
Meanwhile, Agnico Eagle Mines is trading higher at 19.51X. Newmont is trading at a lower 13.11X.
AU is executing a clear strategy of organic and inorganic growth. The acquisition of Egyptian gold producer Centamin in November 2024 added the large-scale, long-life, world-class Tier 1 asset, Sukari, to its portfolio. It has the potential to produce 500,000 ounces annually. Sukari has already established itself as a top producer in the company’s portfolio and added 129,000 ounces and 135,000 ounces in the second and third quarters of 2025, respectively.
Obuasi remains a significant pillar of its long-term strategy, which is expected to deliver 400,000 ounces of annual production at competitive costs by 2028. At Siguiri mine, 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 is intensifying its efforts to streamline operations and sharpen its focus on core assets, particularly in the United States.
AngloGold Ashanti closed its previously announced deal to acquire Augusta Gold Corp in October 2025. This move boosts AU’s footprint in the Beatty District of Nevada through the acquisition of the Reward and Bullfrog properties.
How Should Investors Approach AU Stock Post Q3 Earnings?
AngloGold Ashanti has delivered a strong year-to-date stock performance and reported improved third-quarter results, supported by higher gold prices and increased sales volumes.
Considering its upbeat 2025 outlook and strong earnings growth projections, AU is a solid stock to own. The company’s Zacks Rank #1 (Strong Buy) supports our thesis. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Should AU Stock Be Part of Your Portfolio Post Q3 Results?
Key Takeaways
AngloGold Ashanti PLC (AU - Free Report) shares gained a fresh 52-week high of $85.85 yesterday, fueled by strong third-quarter results on Tuesday. The company reported year-over-year improvements in its top and bottom lines. However, AU’s revenues and earnings missed the Zacks Consensus Estimate.
AngloGold Ashanti’s stock has skyrocketed 283.3% year to date, outperforming the Zacks Mining – Gold industry’s 125.2% upsurge. During this time, the Basic Materials sector has risen 25.3% and the S&P 500 has rallied 19.6%.
AngloGold Ashanti has also outpaced peers like Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines (AEM - Free Report) , which have surged 153.5% and 123.6%, respectively, so far this year.
Let us take a closer look at AngloGold Ashanti’s third-quarter results to assess if this is the right time to buy AU shares.
AU Q3: Solid Earnings Growth Amid High Operating Costs
AngloGold Ashanti reported a 17% year-over-year increase in gold production to 768,000 ounces in the third quarter, driven by the contributions from the recently acquired Sukari mine. The upside was also fueled by solid performances from key assets like Obuasi, Kibali, Geita and Cuiabá. The increased production volumes along with higher metal prices led to a 9% year-over-year jump in its adjusted EBITDA to $1,56 million in the quarter.
Gold revenues surged 61.9% to $2.37 billion. The Zacks Consensus Estimate for the top-line was $2.53 billion. AngloGold Ashanti’s earnings per share skyrocketed 136% to $1.32 due to higher sales volumes and prices. Earnings also increased from $1.25 in the second quarter of 2025 but missed the Zacks Consensus Estimate of $1.34.
AU has been facing headwinds from higher operating costs for the last few quarters, which continued in the third quarter of 2025.
Total cash costs per ounce for the group were up 5% to $1,225. All-in-sustaining costs (AISC) per ounce increased 6% to $1,720. For managed operations, total cash costs rose 5% year over year to $1,244 per ounce, while AISC grew 6% to $1,766 per ounce. The upside was due to inflationary cost pressures from increased labor and mining contractor costs. However, the impacts on its earnings were offset by higher sales volumes and prices.
AngloGold Ashanti Reports Record Cash Flow in Q3
The company generated a record $920 million in free cash flow in the third quarter, a 141% year-over-year whopping rise. The adjusted net debt to adjusted EBITDA ratio improved to 0.09X in the third quarter from 0.37X in the year-ago quarter. AngloGold Ashanti ended the quarter with $3.9 billion in liquidity, including cash and cash equivalents of $2.5 billion.
AU Reaffirms 2025 Guidance
Gold production for 2025 is projected at 2.9-3.225 million ounces. This suggests year-over-year growth of 9-21%. For 2026, the company expects similar output levels to those in 2025.
AngloGold Ashanti Peers’ Q3 Performances
Newmont reported third-quarter 2025 adjusted earnings of $1.71 per share, up from 81 cents in the prior-year quarter. NEM’s revenues for the third quarter were $5.52 billion, up roughly 20% from $4.61 billion in the prior-year quarter. Both the top and bottom lines beat the Zacks Consensus Estimate.
Agnico Eagle Mines posted adjusted earnings of $2.16 per share for the third quarter of 2025, up from $1.14 in the year-ago quarter. Agnico Eagle Mines generated revenues of $3.06 billion, up 41.9% year over year. The top and bottom lines surpassed the Zacks Consensus Estimate.
In the July-September 2025 period, gold prices averaged around $3,500 per ounce, up 41% year over year. Starting at $3,300, gold surged to a high of $3,858.41 at the quarter’s end. This aided the upside of AU and its peers in the third quarter of 2025.
AngloGold Ashanti Sees Positive Estimate Revision Activity
The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 sales is $9.32 billion, indicating a 60.9% year-over-year jump. The consensus mark for the year’s earnings is pegged at $5.80 per share, indicating a year-over-year upsurge of 162.4%.
The Zacks Consensus Estimate for 2026 sales implies a 0.6% year-over-year dip. The same for earnings suggests growth of 11.4%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
EPS estimates for 2025 have moved 9.2% north over the past 60 days, while the same for 2026 has moved up 30.6% over the past 60 days.
Image Source: Zacks Investment Research
AU Stock Trades at a Premium
AngloGold Ashanti’s stock is currently trading at a forward 12-month earnings multiple of 13.36X, which is only slightly higher than the industry average of 13.35X. Considering AU's growth prospects, its premium valuation is warranted.
Image Source: Zacks Investment Research
Meanwhile, Agnico Eagle Mines is trading higher at 19.51X. Newmont is trading at a lower 13.11X.
AngloGold’s Long-Term Growth Strategy Remains Solid
AU is executing a clear strategy of organic and inorganic growth. The acquisition of Egyptian gold producer Centamin in November 2024 added the large-scale, long-life, world-class Tier 1 asset, Sukari, to its portfolio. It has the potential to produce 500,000 ounces annually. Sukari has already established itself as a top producer in the company’s portfolio and added 129,000 ounces and 135,000 ounces in the second and third quarters of 2025, respectively.
Obuasi remains a significant pillar of its long-term strategy, which is expected to deliver 400,000 ounces of annual production at competitive costs by 2028. At Siguiri mine, 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 is intensifying its efforts to streamline operations and sharpen its focus on core assets, particularly in the United States.
AngloGold Ashanti closed its previously announced deal to acquire Augusta Gold Corp in October 2025. This move boosts AU’s footprint in the Beatty District of Nevada through the acquisition of the Reward and Bullfrog properties.
How Should Investors Approach AU Stock Post Q3 Earnings?
AngloGold Ashanti has delivered a strong year-to-date stock performance and reported improved third-quarter results, supported by higher gold prices and increased sales volumes.
Considering its upbeat 2025 outlook and strong earnings growth projections, AU is a solid stock to own. The company’s Zacks Rank #1 (Strong Buy) supports our thesis. You can see the complete list of today’s Zacks #1 Rank stocks here.