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ARMN vs. AAUC: Which Gold Mining Stock is the Better Pick Now?

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Key Takeaways

  • Aris Mining lifted 2025 gold output 22% to 256,503 oz, beating guidance midpoint as Segovia drove growth.
  • Allied Gold targets over 375,000 oz in 2025 on stronger Bonikro and Sadiola output and Phase 1 expansion.
  • ARMN faces rising costs, with 2025 AISC up 6.6% to about $1,641/oz from higher feed, royalties and ramp-ups.

Aris Mining Corporation (ARMN - Free Report) and Allied Gold Corporation (AAUC - Free Report) are emerging gold producers operating in the Zacks Mining - Gold industry. As competitors, both companies are expanding production through a combination of operating mines and development projects across the Americas and Africa.

Both companies have been benefiting from strong growth opportunities in the gold mining sector supported by increasing gold prices and continued investment in mine expansion over the past few years. Let’s take a closer look at their fundamentals, growth prospects and challenges.

The Case for Aris Mining

Aris Mining is capitalizing on its strength in the Latin American gold mining sector with its strong presence, enhanced operations and expansion-focused initiatives. Per the production report, in fourth-quarter 2025, the company produced 69,852 ounces of gold. This brings total production for 2025 to 256,503 ounces, increasing 22% year over year. This exceeded the midpoint of the company’s 2025 guidance range of 230,000-275,000 ounces.

The growth in gold production is primarily driven by the Segovia mine, following the commissioning of its second mill. The added capacity significantly increased Segovia’s processing strength, making it the main contributor to ARMN’s performance. During the fourth quarter, the mine produced 63,137 tonnes of gold. In 2026, the Segovia mine’s gold production is expected to be 265,000-300,000 ounces, up from the 227,762 ounces produced in 2025. 

In December 2025, ARMN also completed the acquisition of the remaining 49% stake in the Soto Norte joint venture from MDC Industry Holding Company LLC in Colombia. With the acquisition, Aris Mining became the sole owner of the Soto Norte project, where a new pre-feasibility study (completed in September 2025) reconfirmed the project as one of the most attractive undeveloped gold assets in the Americas.

Apart from this, the strength in the Marmato operation also remains its long-term growth engine. As the Marmato upper mine continues steady production, development of the Bulk Mining Zone is progressing, with first gold exploration expected in the second half of 2026. Once operational, the project will likely increase output significantly and diversify Aris Mining’s production base. In the fourth quarter, the Marmato mine produced gold of 6,715 ounces. In 2026, the Marmato mine is expected to produce gold of 35,000-50,000 ounces, up from the 28,741 ounces produced in 2025.

The company’s long-term growth strategy also includes generating solid cash flow from operating mines. ARMN remains well-positioned, supported by a strong cash balance of $390 million at the end of fourth-quarter 2025 and healthy cash generation during the same period. This financial strength facilitates Aris Mining’s continued investment activities in expansion projects.

However, ARMN has been grappling with elevated cost pressures. In the third quarter of 2025, ARMN reported an increase in its all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. The company’s consolidated AISC increased 6.6% year over year to roughly $1,641 per ounce.

The increase in ARMN’s costs was primarily attributable to higher volumes of purchased mill feed from Contract Mining Partners, as well as increased royalty and social contribution expenses tied to higher gold prices and stronger sales volumes. Mining costs also rose as a result of greater throughput and the ramp-up of operations following the commissioning of the second mill at Segovia.

The Case for Allied Gold

Allied Gold is benefiting from solid momentum across its operations in Mali, Côte d’Ivoire and Ethiopia. During the first nine months of 2025, it produced 262,077 ounces of gold, slightly above the 258,459 ounces recorded in the same period last year. The company expected to have increased production to more than 375,000 ounces in 2025. This anticipated growth is supported by stronger output from its Bonikro and Sadiola mines, as well as the planned completion of the Phase 1 expansion at Sadiola.

To boost performance, Allied Gold has been drilling high-grade zones, improving mine models and enhancing grade control to increase accuracy and efficiency. It has introduced new equipment at Sadiola to increase fleet availability and strengthened local mine management in Mali. At Bonikro and Agbaou, the company is increasing stripping activities to reach higher-grade ore zones.

Also, based in western Ethiopia, Kurmuk mine is a major development project of AAUC, targeting an average production of about 290,000 ounces per year initially. Backed by 2.7 million ounces of reserves and 3.1 million ounces of resources, Allied Gold is running an extensive exploration program to extend the mine life beyond 15 years and sustain higher production levels. The company aims to grow total resources to 5 million ounces over five years by expanding known deposits and advancing nearby prospects. Recent drilling activities have delivered encouraging extensions and higher-grade zones, which are expected to support potential production above 300,000 ounces annually. These operational upgrades, combined with rising production, are expected to support further growth.

However, AAUC is witnessing cost inflation pressure, which is impacting input prices. In the third quarter of 2025, the company’s total cost of sales increased 20.7% year over year to $2,087 on a per gold ounce sold basis.

The company also recorded weaker cash flow generation as high capital expenditures on development and exploration activities continued to weigh on results. In addition, AAUC’s profitability remained sensitive to gold price movements, as margins were constrained by higher per-ounce costs and ongoing investments.

How Does the Zacks Consensus Estimate Compare for ARMN & AAUC?

The Zacks Consensus Estimate for ARMN’s 2025 earnings per share (EPS) indicates growth of 311.8%. The company’s EPS estimates have been trending 3.7% northward over the past 60 days for 2025. 

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AAUC’s 2025 EPS implies year-over-year growth of 928.6%. The company’s EPS estimates for 2025 have increased 17.1% over the past 60 days.

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Image Source: Zacks Investment Research

Price Performance and Valuation of ARMN & AAUC

In the past six months, Aris Mining’s shares have surged 194.5%, while AAUC stock has gained 148.3%. 

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Image Source: Zacks Investment Research

Aris Mining is trading at a forward 12-month price-to-earnings ratio of 6.17X, below its median of 6.91X. AAUC’s forward earnings multiple sits at 5.46X, higher than its median of 4.71X over the same period.

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Image Source: Zacks Investment Research

Final Take

Aris Mining remains well-positioned for long-term growth, supported by its strong pipeline of gold mining projects. Rising production at Segovia, supported by the commissioning of the second mill and steady progress at Marmato, is strengthening ARMN’s gold output. Its attractive portfolio of development assets, including Soto Norte and Toroparu, further supports growth. The company’s strong cash position of $390 million at the end of the fourth quarter gives it the flexibility to fund ongoing expansions and advance development projects.

In contrast, while AAUC benefits from strengthening operations across Mali, Côte d’Ivoire and Ethiopia, combined with rising production and ongoing efficiency improvements, near-term challenges remain. Elevated costs and weaker cash flow generation due to high capital expenditures continue to pressure the company’s results.

Given these factors, ARMN seems a better pick for investors than AAUC currently. While Aris Mining sports a Zacks Rank #1 (Strong Buy), Allied Gold currently has a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank stocks here.


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