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AngloGold Ashanti PLC AU is slated to report second-quarter 2025 results on Aug. 1, before market open. AU is expected to deliver a year-over-year improvement in earnings in the quarter, aided by upbeat gold prices and higher production numbers.
The Zacks Consensus Estimate for AU’s second-quarter 2025 earnings has moved up 2% over the past 30 days to $1.31 per share. The consensus mark indicates a 118% increase from the year-ago actual.
The company has a trailing four-quarter negative earnings surprise of 8.26%, on average.
Our proven model does not conclusively predict an earnings beat for AngloGold Ashanti this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP: AU has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AngloGold Ashanti is likely to have delivered a strong performance in the second quarter of 2025, building on the robust momentum seen earlier in the year. In the previous quarter, the company achieved its best first-quarter output since 2020, producing 720,000 ounces of gold, which reflected a 22% increase year over year. This growth was attributed to the first full-quarter contribution from the recently acquired Sukari mine, which added 117,000 ounces, as well as solid results from the company’s established operations.
Siguiri delivered a solid 67% year-over-year jump, producing 80,000 ounces in the first quarter, driven by optimized carbon-assisted operations and increased plant stability, which enabled higher throughput. Also, the strategic exclusion of Bidini ore from processing benefited the results.
Tropicana and Sunrise Dam bounced back with 40% and 9% output increases, respectively, from the rainfall disruptions in the year-ago quarter.
Cerro Vanguardia saw a 12% rise in production on improved plant performance and higher grades. This broad-based operational strength highlights AngloGold Ashanti’s success in integrating a new asset and driving productivity gains across its established operations. This momentum is expected to have continued in the second quarter and led to year-over-year higher production numbers.
In the April-June 2025 period, gold prices averaged around $3.301.42 per ounce, marking a 41% year-over-year increase. Tariff threats, financial uncertainty, geopolitical tensions and solid demand from central banks boosted gold prices. Prices had even reached the $3,500 per-ounce mark for the first time.
The company remains focused on lowering costs, leveraging the Full Asset Potential program to enhance operational efficiency and productivity, and offsetting inflationary impacts.
AngloGold Ashanti’s cost management appears effective, with only a 1% rise in average real cash costs between first-quarter 2021 and first-quarter 2025. Its peer group, which includes major gold miners like Agnico Eagle Mines AEM, Newmont Corporation NEM and Barrick Mining Corporation B, has seen a more than 20% spike in average real cash costs.
Overall, we expect higher production numbers and gold prices, as well as benefits from its cost control efforts, to have likely boosted AngloGold Ashanti’s earnings in the to-be-reported quarter.
AngloGold Ashanti shares have gained 25.5% in the past three months, outpacing the Zacks Mining - Gold industry’s growth of 9.9%.
The company has performed better than Agnico Eagle Mines, Newmont Corporation and Barrick Mining Corporation, which have gained 12.2%, 24.3% and 17%, respectively, in the past three months.
AU is currently trading at a forward 12-month earnings multiple of 10.11X, at a discount to the industry average of 12.40X.
Meanwhile, Agnico Eagle and Newmont are trading higher at 18.54X and 13.20X, respectively. Barrick Mining is a cheaper option, trading at 9.62X.
AngloGold Ashanti is executing a clear strategy of organic and inorganic growth. In November 2024, it acquired Egyptian gold producer Centamin, adding the large-scale, long-life, world-class Tier 1 asset (Sukari) to its portfolio. It has the potential to produce 500,000 ounces annually. Obuasi remains a significant pillar of its long-term strategy. This important orebody is expected to deliver 400,000 ounces of annual production at competitive costs by 2028. Its efforts to streamline its portfolio and lower debt levels are also commendable.
AngloGold Ashanti is expected to deliver stronger earnings in the second quarter, driven by elevated gold prices, higher production levels and disciplined cost management. However, the likelihood of an earnings beat appears limited this time around. While the stock offers an attractive valuation and has outperformed peers recently, it seems prudent to hold the position for now, as investors await confirmation from the upcoming earnings release before making further decisions.
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This article originally published on Zacks Investment Research (zacks.com).
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