Is AngloGold Ashanti on Track to Meet 2025 Production Targets?

AngloGold Ashanti PLC AU has kicked off 2025 on a high note, posting its best first-quarter gold production since 2020 and setting an optimistic tone for the rest of the year. Driven by the successful integration of a major acquisition and strong performance across several key operations, AU is firing on all cylinders and reaffirming its full-year outlook. AngloGold Ashanti’s gold production increased 22% year over year to 720,000 ounces in the first quarter of 2025.

This reflected the first full-quarter contribution from the recently acquired Sukari mine in Egypt. This large-scale, long-life, world-class Tier 1 asset, acquired through AngloGold Ashanti’s November 2024 takeover of Centamin, added 117,000 ounces in the first quarter. Sukari is expected to deliver up to 500,000 ounces of gold annually. Broad-based strength across the company’s portfolio added further momentum in the first quarter.

Siguiri delivered a sharp turnaround in performance, producing 80,000 ounces in the first quarter, a 67% jump from the first quarter of 2024. This was driven by optimized carbon-assisted operations and increased plant stability, which enabled higher throughput and the strategic exclusion of Bidini ore from processing. 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, while Geita posted a modest 2% improvement. This broad-based operational strength highlights AngloGold Ashanti’s success in integrating its newest asset and driving productivity gains across its established operations.

The company affirmed its 2025 production guidance of 2.900-3.225 million ounces, suggesting year-over-year growth of 9-21%. Output in 2026 is expected to remain at similar levels.

Mixed Performances for AngloGold Ashanti’s Peers

Looking across the competitive landscape, Barrick Mining Corporation B saw a 19% year-over-year drop in first-quarter gold production to 758,000 ounces. This downturn was primarily due to the suspension of operations at the Loulo-Gounkoto mine amid Barrick’s dispute with the Malian government over dividing the economic benefits and lower output across Carlin and Cortez. Barrick provided a tepid forecast for 2025, with attributable gold production expected in the range of 3.15-3.5 million ounces, excluding production from Loulo-Gounkoto.

Agnico Eagle Mines Limited AEM saw a modest year-over-year decline of around 0.5% to 873,794 ounces in the first quarter on lower output at Canadian Malartic. Agnico Eagle wrapped up the acquisition of O3 Mining during the first quarter, adding the Marban project, which is expected to contribute around 130,000 ounces of gold per year to the Canadian Malartic complex. Agnico Eagle remains on track to meet its 2025 gold production target of around 3.3-3.5 million ounces.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti stock has appreciated 102.4% year to date, outperforming the Zacks Mining – Gold industry’s 55.1% growth. During this time, the Basic Materials sector has risen 13.8%, while the S&P 500 has gained 5.4%.

AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 10.12X, at a discount to the industry average of 13.02X. The stock has a Value Score of B.

The Zacks Consensus Estimate for AU’s 2025 sales is $8.85 billion, indicating 52.8% year-over-year growth. The consensus mark for the year’s earnings is $4.99 per share, indicating year-over-year growth of 125.8%. The Zacks Consensus Estimate for 2026 sales implies 2.28% year-over-year growth. The same for earnings indicates a decline of 1.3%. However, EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below.

AU stock currently 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