Can AngloGold Ashanti Finish 2025 With Strong Free Cash Flow Growth?

AngloGold Ashanti plc AU delivered a solid 185% surge in the free cash flow in the first nine months of 2025 to $1.86 billion. This includes a record free cash flow of $920 million in the third quarter, a whopping 141% year-over-year rise. The upside is driven by AngloGold Ashanti’s continued cost discipline, higher production and higher gold prices.

Net cash inflow from operating activities was $3.17 billion in the first nine months of 2025, marking a 147% year-over-year upsurge from $1.28 billion. Along with higher gold prices, solid gold sales volumes from managed operations and increased dividends received from joint ventures also aided growth. These gains were, however, somewhat negated by higher total operating costs and increased tax payments.

The company reported available liquidity of $3.9 billion as of Sept. 30, 2025, with cash and cash equivalents of $2.5 billion.

Gold production in the first three quarters was driven by strong contributions from the recently acquired Sukari mine, which has already established itself as a top producer in the company’s portfolio. The rise was also aided by improved performances at key assets, including Obuasi, Siguiri, Geita and Cerro Vanguardia. Backed by these, AU’s gold production increased 20% year over year in the first nine months of 2025 to 2.292 million ounces.

Backed by a solid first-nine-month production performance, the company affirmed its 2025 production guidance of 2.900-3.225 million ounces, suggesting year-over-year growth of 9-21%. The prospects of higher production for the year, as well as the solid rally in gold prices, indicate that the company will likely deliver higher earnings and cash flow in fiscal 2025.

Newmont Corporation NEM achieved the first-nine-month free cash flow of $4.48 billion, marking a significant improvement from $1.28 billion in the same period a year ago. Newmont generated a record third-quarter free cash flow of $1.6 billion. This marked the fourth consecutive quarter with more than $1 billion in free cash flow for the company. Strong free cash flow positions Newmont to strengthen its balance sheet and pursue growth investments.

Agnico Eagle Mines AEM reported a free cash flow of $3.09 billion for the first nine months of 2025, a 96.4% year-over-year jump. In the third quarter of 2025, Agnico Eagle Mines registered a record free cash flow of $1.19 billion.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti’s stock has appreciated 282.7% in the past year, outperforming the Zacks Mining – Gold industry’s 151.8% rally. During this time, the Basic Materials sector has risen 32.9%, whereas the S&P 500 has grown 18%.

AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 111.13X, discounted compared with the industry average of 13.61X. The stock has a Value Score of B.

Meanwhile, Agnico Eagle Mines and Newmont are trading higher at 18.56X and 14.39X, respectively.

The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 sales is $9.67 billion, indicating a 66.9% year-over-year jump. The consensus mark for the year’s earnings is pegged at $5.51 per share, indicating a year-over-year upsurge of 149.3%.

The Zacks Consensus Estimate for 2026 sales implies a 13.3% year-over-year dip. The same for earnings suggests growth of 16.8%.

EPS estimates for 2025 have moved 3.8% north over the past 60 days, while the same for 2026 has moved up 29.6% over the past 60 days.

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

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