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Can AngloGold Ashanti's Augusta Buyout Aid Further Growth?

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Key Takeaways

  • AU closed its Augusta Gold acquisition, adding the permitted, feasibility-stage Reward project.
  • The deal brings the Bullfrog deposit and nearby tenements, boosting AU's resources in Nevada.
  • Reward is slated for production within 12 months of full-scale construction, targeting 150,000 ounces yearly.

AngloGold Ashanti plc (AU - Free Report) closed the Augusta Gold Corp acquisition on Oct. 25, boosting its footprint in the Beatty District of Nevada, which is in one of the most significant emerging gold districts in the United States.

Per the agreement, AngloGold Ashanti funded the deal with cash at a price of C$1.70 (roughly $1.24) per share of common stock. This implies an equity value of C$152 million (approximately $111 million).

The deal closed following the approval by Augusta Gold shareholders at a special meeting held on Oct. 20, 2025. The deal adds a construction-ready permitted, feasibility-stage project, the Reward project, to AngloGold Ashanti’s portfolio. In September 2025, Augusta Gold announced that the Reward Project is set to commence production within 12 months of full-scale construction. Augusta Gold aims to achieve low-cost production of 150,000 ounces of gold per annum in Nevada by 2027.

AU will also acquire the Bullfrog deposit and the tenements surrounding the properties, strengthening its position in a major U.S. gold district, enabling the company to undertake integrated development. The adjacent properties will significantly add to AU’s mineral resources.

Acquisitions by AngloGold Ashanti’s Peers

Coeur Mining, Inc. (CDE - Free Report) recently inked a deal to acquire New Gold Inc. (NGD - Free Report) to form one of the largest all-North American precious-metals producers. New Gold and Coeur Mining combined are projected to produce 900,000 ounces of gold, 20 million ounces of silver and substantial copper output in 2026. New Gold and Coeur Mining together are expected to leverage their strong financial position to accelerate investment in several high???return organic growth opportunities.

Newmont Corporation (NEM - Free Report) acquired Newcrest Mining Limited to create an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. Newmont has achieved $500 million in annual run-rate synergies, following the Newcrest buyout.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti’s stock has appreciated 265.4% in a year’s time, outperforming the Zacks Mining – Gold industry’s 125.1% rally. During this time, the Basic Materials sector has risen 16.8%, whereas the S&P 500 has grown 17.6%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 13.33 X, slightly discount compared with the industry average of 13.42X. The stock has a Value Score of B.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for AU’s 2025 sales is pegged at $9.67 billion, indicating a 66.9% year-over-year surge. The consensus mark for the year’s earnings stands at $5.71 per share, suggesting a year-over-year upsurge of 158.3%.

The Zacks Consensus Estimate for 2026 sales implies a 13.3% year-over-year dip. The same for earnings indicates growth of 13.7%. However, EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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