Will AngloGold Ashanti's Portfolio Optimization Efforts Unlock Value?

AngloGold Ashanti plc AU is intensifying its efforts to streamline operations and sharpen its focus on core assets, particularly in the United States. A key step in this ongoing portfolio optimization effort came last month when AU inked a deal to sell its interest in Mineração Serra Grande mine (MSG) in Brazil, to Aura Minerals Inc for $76 million. 

MSG is AngloGold Ashanti’s smallest operation by production but ranks as one of its higher-cost assets. It has been undergoing stabilization efforts, including the decommissioning of an old tailings storage facility. Divesting it allows the company to better allocate resources toward more productive and lower-cost operations.

Earlier this year, the company sold its interests in two gold projects (the Doropo Project and the Archean-Birimian Contact) in Côte d’Ivoire to Resolute Mining Limited.  AngloGold Ashanti had gained indirect interest in these projects when it acquired Centamin plc in November 2024. 

After a detailed review, the company concluded that the Doropo Project’s scale and the competition for capital among other higher-priority development assets in the portfolio made these projects better suited for a company like Resolute, which has strong operational experience in West Africa and the financial capacity to advance them efficiently.

Portfolio optimization remains one of the key priorities for AngloGold Ashanti this year. The company’s financial position has improved considerably, with the adjusted net debt to adjusted EBITDA ratio improving to 0.15X in the first quarter of 2025 compared with 0.86X in the first quarter of 2024. The company ended the quarter with $3 billion in liquidity, including cash and cash equivalents of $1.5 billion. 

The company’s focus this year is to continue the implementation of the underhand drift and fil UHDF mining method at Obuasi and make stoping improvements. This important orebody is expected to deliver around 400,000 ounces of annual production at competitive costs by 2028.

Strategic Portfolio Moves by AngloGold Ashanti’s Peers

Newmont Corporation NEM has taken bold steps in reshaping its portfolio, aggressively shedding non-core assets to sharpen its focus on Tier-1 operations amid cost pressures. Newmont completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada. 

The asset streamlining is rooted in Newmont’s objective to concentrate capital on high-return, long-life assets that underpin its competitive edge and long-term sustainability.

Kinross Gold Corporation KGC also streamlined its portfolio through the sale of its Russian assets, including the Kupol mine and Udinsk project, in 2022. Kinross also sold its 90% interest in the Chirano mine in Ghana in 2022. With these divestments, Kinross’ rebalanced portfolio now has a strong production profile anchored by Tasiast and Paracatu, its two biggest assets.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti stock has appreciated 44.5% year to date, outperforming the Zacks Mining – Gold industry’s 23.6% growth. During this time, the Basic Materials sector has risen 22.7%, while the S&P 500 has gained 25%.

AngloGold Ashanti is currently trading at a forward 12-month earnings multiple of 9.68X, a discount to the industry average of 12.87X. 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.

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

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