AU vs. NEM: Which Gold Mining Stock Is the Better Buy Right Now?

AngloGold Ashanti PLC AU and Newmont Corporation NEM are two prominent gold producers, each with a diversified portfolio of mines across multiple continents. Both AU and NEM are gaining from the increase in gold prices.

Gold prices are benefiting from safe-haven demand, heightened geopolitical risks and trade tensions. The prices of gold are currently trending at a fresh high of around $4,500 per ounce, backed by expectations of another Federal Reserve rate cut. The metal has advanced 70.6% in a year.

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

The Case for AU

AngloGold Ashanti, headquartered in South Africa, has operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo, 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%.

However, AU has been facing headwinds from higher operating costs for the last few quarters. Total cash costs per ounce for the group rose 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 NEM

Newmont, headquartered in Colorado, is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. Newmont reached a milestone in October 2025 with commercial production at the Ahafo North project. Ahafo North is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years. Newmont expects its growth projects to expand production capacity and extend mine life. Along with the Ahafo North expansion, the company is progressing with several growth projects like Cadia Panel Caves and Tanami Expansion 2 in Australia.

Newmont is focused on optimizing its portfolio. It recently inked a deal to sell 6,773,641 common shares of Fuerte Metals Corporation. NEM owns its interests in Fuerte through its wholly owned subsidiary, Goldcorp Canada ULC.

Newmont produced 1.42 million ounces of gold in the third quarter of 2025, which was down 15% year over year. The lower production was due to reduced grades and planned shutdowns at Penasquito and Lihir, and the end of mining operations at the Subika open pit at Ahafo South. NEM’s strategic asset sales, aimed at sharpening focus on Tier-1 operations, have also weighed on production.

It anticipates maintaining its expected gold production for 2025 at 5.9 million ounces. The company produced 6.85 million ounces of gold in 2024.

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.

How do Estimates Compare for AU & NEM?

The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 earnings is pegged at $5.51 per share, indicating year-over-year growth of 149.3%. The earnings estimate of $7.81 for 2026 implies a 41.8% rise. The estimates for both the years have been trending north over the past 60 days.

The Zacks Consensus Estimate for Newmont’s earnings for 2025 is pegged at $6.06 per share, indicating a year-over-year jump of 74.1%. The 2026 estimate of $7.07 implies growth of 16.1%. The estimates for both the years have been trending north over the past 60 days.

AU & NEM: Price Performance & Valuation Comparisons

In the past year, the AU stock has skyrocketed 297.3%, whereas NEM has climbed 179.4%.

AU is currently trading at a forward 12-month earnings multiple of 11.54X, higher than its five-year median. NEM is currently trading at a forward 12-month earnings multiple of 14.94X, lower than its five-year median.

AU or NEM: Which Is the Better Pick?

Both AngloGold Ashanti and Newmont are well-positioned to benefit from the ongoing rally in gold prices, along with their efforts to grow their production capabilities. Both companies have a Zacks Rank #3 (Hold) at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AngloGold Ashanti has delivered a stronger one-year price performance than Newmont. In addition, AU’s cheaper valuation is attractive. Given these factors, AU appears to be a more compelling investment choice right now.

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

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