AAUC vs. CGAU: Which Gold Mining Stock is the Better Pick Now?

Allied Gold Corporation AAUC and Centerra Gold Inc. CGAU are emerging gold producers operating in the Zacks Mining - Gold industry. As rivals, both companies are engaged in the extraction and operation of gold mines while pursuing growth through exploration, mine expansions and strategic partnerships.

Rising gold prices and continuous investments in mine expansions have created a supportive environment for both companies in the gold mining sector. Let’s take a closer look at their fundamentals, growth prospects and challenges.

The Case for Allied Gold

Allied Gold is poised to gain from solid momentum across its operations in Mali, Côte d’Ivoire and Ethiopia. According to the latest preliminary results, in the fourth quarter of 2025, the company produced 117,004 ounces of gold, the highest output recorded in the year. AAUC’s total gold production for 2025 reached 379,081 ounces, which surpassed its guidance of above 375,000 ounces. The rise in output was driven by higher ore grades and more ore mined at its operating mines.

This growth reflects stronger output from Allied Gold’s Bonikro mine and a key milestone at its Sadiola operation, where the Phase 1 fresh ore comminution circuit has entered production. The expansion enables the company to process more high-grade ores, improving efficiency and cash flow.

The company continues to drill high-grade zones, refining its mine models and improving grade control to enhance accuracy and productivity. Allied Gold has also deployed new equipment at its Sadiola mine to improve fleet availability and has strengthened mine management with experienced local hires in Mali. It’s also increasing AAUC’s stripping activities at Bonikro and Agbaou sites to access higher-grade ore. These efforts to lift production, along with operational improvement, are expected to benefit the company.

Also, Allied Gold is expanding exploration activity at its Kurmuk mine in Ethiopia ahead of planned production in mid-2026. The company is drilling to increase gold resources and extend mine life at Ashashire and Dish Mountain.

It is worth noting that in January 2026, AAUC entered into an agreement to be acquired by Zijin Gold International Company Limited (Zijin Gold). The all-cash deal is valued at C$5.5 billion (approximately $4.1 billion). Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in late April 2026.

However, Allied Gold continues to face some headwinds. In 2026, the company expects all-in sustaining costs of $1,200-$1,300 per ounce, which may limit margin upside and leave earnings vulnerable if gold prices soften. Also, heavy capital expenditures tied to expansion and development projects are likely to weigh on near-term cash flow generation.

The Case for CGAU

Centerra Gold posted a strong fourth quarter in 2025, underpinned by consistent production, meaningful cash generation across its core assets and favorable metal prices. The company benefited from solid operating results by producing 26,748 ounces at the Öksüt Mine, where higher grades and smooth plant performance supported strong quarterly output. At the flagship Mount Milligan Mine, the company produced 44,105 ounces of gold. 

A key development during the period was the advancement of Mount Milligan’s long-term permitting and technical work, which reinforced the asset’s importance by extending operational visibility to 2045, increasing reserves and authorizations for a 10% processed throughput expansion by 2028. Complementing these operational achievements, Centerra Gold continued to advance its growth pipeline, notably the Goldfield District Project in Nevada, which is moving toward construction following strong economic study results and ongoing evaluation work at the Kemess property. 

In January 2026, Mount Milligan secured an amended environmental assessment and all related permits, allowing the continuation of its operations through 2035. CGAU continues to advance engineering and other studies to support future permit authorizations needed to achieve the mine life extension of Mount Milligan to 2045.  

At the end of the fourth quarter, CGAU’s cash and cash equivalents were around $928.9 million. Free cash flow at the end of the fourth quarter was $95 million. Also, it had an undrawn credit facility of $400 million, bringing total liquidity to nearly $928.9 million, which provides flexibility to fund operations, growth projects and potential strategic initiatives without the need for additional debt.

How Does the Zacks Consensus Estimate Compare for AAUC & CGAU?

The Zacks Consensus Estimate for AAUC’s 2026 earnings per share (EPS) indicates growth of 914.3%. The company’s EPS estimates have been trending 2.9% northward over the past 60 days for 2026. 

The Zacks Consensus Estimate for CGAU’s 2026 EPS implies year-over-year growth of 42.3%. The company’s EPS estimates for 2026 have increased 25.4% over the past 60 days.

Price Performance and Valuation of AAUC & CGAU

In the past three months, AAUC’s shares have surged 63.2%, while CGAU stock has gained 49%. 

AAUC is trading at a forward 12-month price-to-earnings ratio of 1.89X, above its median of 1.18X. Centerra Gold’s forward earnings multiple sits at 3.06X, higher than its median of 1.46X over the same period.

Final Take

While AAUC benefits from strengthening operations across Mali, Côte d’Ivoire and Ethiopia, combined with rising production and ongoing efficiency improvements, near-term challenges remain. High costs and weaker cash flow generation due to high capital expenditures are expected to pressure the company’s results.

In contrast, Centerra Gold remains well-positioned for long-term growth, supported by steady production from its core assets and a strengthening project pipeline. Solid output from the Öksüt Mine and the Mount Milligan Mine continues to underpin gold production, while ongoing permitting and technical work at Mount Milligan supports mine life visibility toward 2045 and a planned 10% throughput expansion by 2028.

Given these factors, CGAU seems a better pick for investors than AAUC currently. While Allied Gold currently has a Zacks Rank #3 (Hold), Centerra Gold sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research