AU vs. SSRM: Which Gold Mining Stock Is the Better Buy?

AngloGold Ashanti PLC AU and SSR Mining Inc. SSRM are two prominent gold producers, each with a diversified portfolio of mines across multiple continents. Both AU and SSRM are gaining from the upside in gold prices.

Gold price is benefiting from safe-haven demand, heightened geopolitical risks and trade tensions. The metal peaked at an all-time high of $4,382 in October 2025. The prices of gold are currently trending above $4,153 per ounce, backed by further expectations of a Federal Reserve rate cut next month. The metal has advanced 57.8% in a year’s time.

For investors seeking to ride this momentum, the question is: which stock offers better value? Let’s examine the fundamentals, growth prospects and challenges for AngloGold Ashanti and SSR Mining.

The Case for AngloGold Ashanti

AngloGold Ashanti, headquartered in South Africa, has operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo (DRC), Egypt, Ghana, Guinea and Tanzania. In October 2025, it bolstered its asset base with the acquisition of Augusta Gold Corp. This addition expands AU’s footprint in the Beatty District of Nevada through the acquisition of the Reward and Bullfrog properties.

AngloGold Ashanti also expanded its portfolio in November 2025 with the acquisition of Egyptian gold producer Centamin, adding the large-scale, long-life, world-class Tier 1 Sukari mine, which has the potential to produce 500,000 ounces annually. The Sukari mine contributed 135,000 ounces of gold in the third quarter of 2025, cementing its position as one of the company’s top producers.

The company reported a 17% year-over-year increase in gold production to 768,000 ounces in the third quarter. 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 billion in the quarter. Gold revenues surged 61.9% to $2.37 billion.

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.

However, AU has been facing headwinds from higher operating costs for the last few quarters. Total cash costs per ounce for the group were up 5% to $1,225 in the third quarter. 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 generated a record $920 million in free cash flow in the third quarter, a 141% year-over-year whopping rise. The company ended the quarter with $3.9 billion in liquidity, including cash and cash equivalents of $2.5 billion. The adjusted net debt to adjusted EBITDA ratio improved to 0.09X in the third quarter from 0.37X in the year-ago quarter.

AU remains focused on its Full Asset Potential program to offset the inflationary impacts. The company is executing a clear strategy of organic and inorganic growth. It is also intensifying its efforts to streamline operations and sharpen its focus on core assets, particularly in the United States. In June 2025, AU inked a deal to sell its interest in the Mineração Serra Grande mine in Brazil (one of its higher-cost assets) following the sale of its interests in two gold projects in Côte d’Ivoire.

Obuasi remains a significant pillar of its long-term strategy. The mine aided AU's production upside in the quarter, driven by growing contribution from underhand drift-and-fill mining and improvement in recovered grade. This important orebody is expected to deliver 400,000 ounces of annual production at competitive costs by 2028.

The Case for SSR Mining

SSR Mining has its assets located in four jurisdictions - the United States, Turkey, Canada and Argentina. In March 2025, SSR Mining closed the acquisition of the Cripple Creek & Victor (CC&V) mine, which positions it as the third-largest gold producer in the United States.

This open-pit mine is expected to produce approximately 170,000 ounces of gold annually. The deal is expected to be accretive across all key per-share metrics—net asset value (NAV), gold production, mineral reserves and free cash flow—strengthening the company’s overall investment appeal and strategic flexibility. The mine has a projected 12-year mine life, with 26 years of total production based on 2.8 million ounces of gold mineral reserves.

SSRM’s total gold production is expected to be in the lower half of 410,000-480,000 gold equivalent ounces for 2025 (including output from Seabee, Marigold and CC&V). The company had produced 399,267 gold equivalent ounces in 2024.

However, operations at the Çöpler mine in Turkey remain suspended following the heap leach failure on Feb. 13, 2024. The company is recording care and maintenance expense, which represents depreciation and direct costs not associated with the environmental reclamation and remediation costs.

SSRM is working with authorities to restart the mine, but no timeline or conditions for resumption have yet been determined. The company expects reclamation and remediation costs to range from $250-$300 million for 2025.

As of Sept. 30, 2025, SSR Mining had a cash and cash equivalent balance of $409 million and available liquidity of $909.3 million. Its debt-to-capital ratio stood at 0.08 at the end of the third quarter. The company continues to advance exploration and development activities across its portfolio in the quarter as it targets potential high-return, low capital intensity mine life extension opportunities at Marigold, Seabee and Puna.

How do Estimates Compare for AU & SSRM?

The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 earnings is pegged at $5.71 per share, indicating year-over-year growth of 158.4%. The earnings estimate of $6.48 for 2026 implies a 13.5% rise. The estimates have been trending north over the past 60 days.

The Zacks Consensus Estimate for SSRM’s earnings for 2025 is pegged at $1.84 per share, indicating a year-over-year jump of 557%. The 2026 estimate of $3.57 implies a growth of 94.3%. The estimates have been trending north over the past 60 days.

AU & SSRM: Price Performance & Valuation Comparisons

In the past six months, AU stock has gained 105.5%, while SSRM has climbed 92.8%.

AU is currently trading at a forward 12-month earnings multiple of 13.88X, higher than its five-year median. SSRM is currently trading at a forward 12-month earnings multiple of 6.84X, lower than its five-year median.

AU or SSRM: Which is the Better Pick?

AngloGold Ashanti has delivered a stronger six-month price performance compared with SSR Mining. AU’s premium valuation also appears justified given its robust project pipeline, earnings growth projections and consistent estimate revision activity. SSR Mining remains an attractive investment as well, backed by its expanding production profile, ongoing operational improvements and upward estimate revision activity.

Both AngloGold Ashanti and SSR Mining are well-positioned to benefit from the ongoing rally in gold prices, along with their efforts to grow their production capabilities. Given these factors, both companies sport a Zacks Rank #1 (Strong Buy) at the moment and are solid investment options for investors seeking to capitalize on the rally in gold prices. You can see the complete list of today’s Zacks #1 stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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