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AU's Free Cash Flow Soars 190% in Q1: Is More Growth Ahead?
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Key Takeaways
AU delivered a record $1.2B free cash flow in Q1 2026, driven by higher gold prices and cost discipline.
AU ended March with $4.6B liquidity and shifted to net cash of $868M from net debt a year earlier.
AU expects 2026 gold output of 2.80-3.17M ounces, with Obuasi ramp-up supporting stable 2027 production.
AngloGold Ashanti plc (AU - Free Report) delivered a record $1.2 billion in free cash flow in the first quarter of 2026, a 190% year-over-year whopping rise. The upside is driven by AngloGold Ashanti’s continued cost discipline, steady production and higher gold prices.
Net cash inflow from operating activities was $1.71 billion in the first quarter of 2026, marking a 136% year-over-year increase from $725 million. The rise was primarily driven by a higher average gold price received per ounce and increased dividends received from joint ventures. These gains were, however, somewhat negated by higher total operating costs and increased tax payments.
The company reported available liquidity of $4.6 billion as of March 31, 2026, with cash and cash equivalents of $3.15 billion. AngloGold Ashanti held a net cash position of $868 million as of March 31, 2026, against a net debt of $755 million at the end of the prior-year quarter.
AngloGold Ashanti’s gold production increased 1% year over year. The upside was driven by solid performances at Geita, Cuiabá, Obuasi, Iduapriem, Cerro Vanguardia and Tropicana, partially negated by lower contributions from Sunrise Dam, Siguiri, Kibali and Sukari.
Gold production for 2026 is projected at 2.80-3.17 million ounces. This suggests a year-over-year dip of 3% at the mid-point due to cost pressures. The company expects 2027 production to be fairly at the same level as 2026, driven by continued ramp-up at Obuasi.
AU is gaining from the increase in gold prices in 2026. The prospects of stable production, driven by mine performances, as well as the solid rally in gold prices, indicate that the company will likely deliver higher earnings and cash flow in the near future.
Performance of AngloGold Ashanti’s Peers
Newmont Corporation (NEM - Free Report) reported first-quarter 2026 revenues of $7.31 billion, marking a year-over-year increase of 43.8%. It delivered a quarterly record free cash flow of $3.1 billion in the first quarter. For 2026, Newmont expects 5.3 million gold ounces, including 3.9 million gold ounces from Newmont's managed operations.
Agnico Eagle Mines Ltd. (AEM - Free Report) reported first-quarter 2026 revenues of $4.10 billion, marking a year-over-year increase of 66%. Agnico Eagle Mines delivered a free cash flow of $732 million in the quarter. Agnico Eagle Mines expects production of 3.3-3.5 million ounces in 2026.
AU’s Price Performance, Valuations & Estimates
AngloGold Ashanti’s stock has appreciated a whopping 91.7% in the past year, outperforming the Zacks Mining – Gold industry’s 46.2% upsurge. During this time, the Basic Materials sector has risen 25.5%, whereas the S&P 500 has grown 26%.
Image Source: Zacks Investment Research
The AU stock is currently trading at a forward 12-month earnings multiple of 9.24X, at a discount to the industry average of 9.09X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AngloGold Ashanti’s 2026 sales is $12.24 billion, indicating a 25.8% year-over-year jump. The consensus mark for the year’s earnings is pegged at $8.91 per share, suggesting a year-over-year surge of 65.9%.
The Zacks Consensus Estimate for 2027 sales implies a 16.9% year-over-year dip. The same for earnings suggests a slip of 0.6%.
EPS estimates for 2026 have moved 1.8% north over the past 60 days, while the same for 2027 has moved up 1.1% over the past 60 days.
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AU's Free Cash Flow Soars 190% in Q1: Is More Growth Ahead?
Key Takeaways
AngloGold Ashanti plc (AU - Free Report) delivered a record $1.2 billion in free cash flow in the first quarter of 2026, a 190% year-over-year whopping rise. The upside is driven by AngloGold Ashanti’s continued cost discipline, steady production and higher gold prices.
Net cash inflow from operating activities was $1.71 billion in the first quarter of 2026, marking a 136% year-over-year increase from $725 million. The rise was primarily driven by a higher average gold price received per ounce and increased dividends received from joint ventures. These gains were, however, somewhat negated by higher total operating costs and increased tax payments.
The company reported available liquidity of $4.6 billion as of March 31, 2026, with cash and cash equivalents of $3.15 billion. AngloGold Ashanti held a net cash position of $868 million as of March 31, 2026, against a net debt of $755 million at the end of the prior-year quarter.
AngloGold Ashanti’s gold production increased 1% year over year. The upside was driven by solid performances at Geita, Cuiabá, Obuasi, Iduapriem, Cerro Vanguardia and Tropicana, partially negated by lower contributions from Sunrise Dam, Siguiri, Kibali and Sukari.
Gold production for 2026 is projected at 2.80-3.17 million ounces. This suggests a year-over-year dip of 3% at the mid-point due to cost pressures. The company expects 2027 production to be fairly at the same level as 2026, driven by continued ramp-up at Obuasi.
AU is gaining from the increase in gold prices in 2026. The prospects of stable production, driven by mine performances, as well as the solid rally in gold prices, indicate that the company will likely deliver higher earnings and cash flow in the near future.
Performance of AngloGold Ashanti’s Peers
Newmont Corporation (NEM - Free Report) reported first-quarter 2026 revenues of $7.31 billion, marking a year-over-year increase of 43.8%. It delivered a quarterly record free cash flow of $3.1 billion in the first quarter. For 2026, Newmont expects 5.3 million gold ounces, including 3.9 million gold ounces from Newmont's managed operations.
Agnico Eagle Mines Ltd. (AEM - Free Report) reported first-quarter 2026 revenues of $4.10 billion, marking a year-over-year increase of 66%. Agnico Eagle Mines delivered a free cash flow of $732 million in the quarter. Agnico Eagle Mines expects production of 3.3-3.5 million ounces in 2026.
AU’s Price Performance, Valuations & Estimates
AngloGold Ashanti’s stock has appreciated a whopping 91.7% in the past year, outperforming the Zacks Mining – Gold industry’s 46.2% upsurge. During this time, the Basic Materials sector has risen 25.5%, whereas the S&P 500 has grown 26%.
The AU stock is currently trading at a forward 12-month earnings multiple of 9.24X, at a discount to the industry average of 9.09X.
The Zacks Consensus Estimate for AngloGold Ashanti’s 2026 sales is $12.24 billion, indicating a 25.8% year-over-year jump. The consensus mark for the year’s earnings is pegged at $8.91 per share, suggesting a year-over-year surge of 65.9%.
The Zacks Consensus Estimate for 2027 sales implies a 16.9% year-over-year dip. The same for earnings suggests a slip of 0.6%.
EPS estimates for 2026 have moved 1.8% north over the past 60 days, while the same for 2027 has moved up 1.1% over the past 60 days.
Image Source: Zacks Investment Research
AU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.