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Globe and Mail
7 days ago
- Business
- Globe and Mail
Can AngloGold Ashanti Maintain Its Strong Free Cash Flow Growth?
AngloGold Ashanti plc ( AU ) delivered an impressive seven-fold increase in free cash flow to $407 million in the first quarter of 2025. The jump in free cash flow was primarily attributed to higher gold prices, which added $544 million, while increased volumes accounted for a further $246 million. Gold production and sales from managed operations were bolstered by the first-time contribution from the recently acquired Sukari Gold Mine in Egypt and solid output improvements at both Siguiri and Tropicana. Net cash inflow from operating activities was $725 million in the quarter, marking a 188% increase year over year from $252 million. This strong performance was primarily driven by a on higher prices and sales volumes. However, some of these gains were offset by higher volume-related operating costs, reduced dividends from joint ventures and increased tax payments. After accounting for capital expenditure, loan repayments from Kibali and dividends paid to non-controlling shareholders, AngloGold Ashanti generated a free cash inflow of $403 million. The company closed the quarter with approximately $3.0 billion in liquidity, including $1.5 billion in cash and cash equivalents. Adjusted net debt fell 60% year over year to $525 million, with the adjusted net debt-to-EBITDA ratio improving to 0.15x from 0.86x. AngloGold Ashanti remains focused on maintaining a strong and flexible balance sheet. In 2024, the company had also demonstrated strong performance with free cash flow reaching $942 million, up 764% from 2023, primarily due to favorable gold pricing. For 2025, AngloGold Ashanti projects gold production of 2.9-3.225 million ounces, indicating 9–21% growth over the prior year. Higher production, combined with the rally in gold prices this year as well as the company's efforts to lower costs, is expected to drive further gains in cash flow this year. Newmont Corporation NEM achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. Strong free cash flow positions Newmont to strengthen its balance sheet and pursue strategic growth investments. Barrick Mining Corporation B reported a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick's higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation. AU's Price Performance, Valuations & Estimates AngloGold Ashanti's stock has skyrocketed 125% year to date, outperforming the Zacks Mining – Gold industry's 54.2% growth. During this time, the Basic Materials sector has risen 13.6% and the S&P 500 has rallied 6.8%. AU is currently trading at a forward 12-month earnings multiple of 10.49X, a discount to the industry average of 12.46X. The stock has a Value Score of B. The Zacks Consensus Estimate for AngloGold Ashanti'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 2.3% year-over-year growth. The same for earnings indicates a decline of 1.3%. EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 Newmont Corporation (NEM): Free Stock Analysis Report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Can AngloGold's Cost Discipline Help It Maintain Edge Over Peers?
AngloGold Ashanti plc AU continues to navigate industry-wide inflationary pressures and manages to deliver resilient cost performance, backed by its Full Asset Potential (FAP) program and increased cost vigilance at the site level. AU reported a 4% year-over-year increase in group total cash costs to $1,223 per ounce in the first quarter of 2025. But digging deeper, the increase reflected a 5% rise in inflation across its operating jurisdictions and a 5% uptick in royalty costs linked to the higher gold prices. Overall, the company saw a 7% increase in market-driven costs. Managed operations saw a 2% year-over-year decline in total cash costs per ounce despite increases in royalties. This was driven by the inclusion of Sukari following the Centamin acquisition in November 2024 and steady performance at Siguiri. These gains were partially offset by operational challenges and a temporary plant stoppage at Iduapriem. Non-managed joint ventures experienced cost pressures, with total cash costs soaring 59% year over year to $1,325 per ounce. This was due to lower gold production, higher royalties and increased open pit volume-related operating costs at Kibali. All-in sustaining costs per ounce (AISC) for the group inched up 1% year over year to $1,640 per ounce in the quarter. At managed operations, AISC per ounce dipped 2% reflecting the positive impact of Sukari's inclusion, while AISC at non-managed joint ventures increased 37% due to weaker operational performance at Kibali. For 2025, AngloGold projects group total cash costs at $1,125-$1,225 per ounce, and AISC between $1,580 and $1,705 per ounce. Both ranges indicate a 2% increase at the midpoint from the year-ago reported levels. The company remains focused on improving its position on the cost curve, leveraging the FAP program to enhance operational efficiency and productivity offsetting inflationary impacts. Its cost management appears effective, with only a 1% rise in average real cash costs over the timeframe between first-quarter 2021 and first-quarter 2025. Its peer group, which includes major gold miners like Barrick Mining Corporation B and Newmont Corporation NEM, has seen a more than 20% spike in average real cash costs. Newmont's gold costs applicable to sales rose 16% year over year to $1,227 per ounce in the first quarter. AISC was $1,651 per ounce, reflecting a roughly 15% year-over-year increase. The rise was attributed to a decline in production due to non-core asset divestments as Newmont shifts its focus to Tier 1 assets. Barrick Mining saw a 22% sequential increase in AISC to $1,775 per ounce in the first quarter due to operational challenges, higher total cash costs per ounce and an uptick in mine site sustaining capital expenditure. Lower production due to the suspension of operations at Barrick's Loulo-Gounkoto mine also contributed to the rise. AU's Price Performance, Valuations & Estimates AngloGold Ashanti's stock has skyrocketed 104% year to date, outperforming the Zacks Mining – Gold industry's 53% growth. During this time, the Basic Materials sector has risen 13.7% and the S&P 500 has rallied 5.9%. AU is currently trading at a forward 12-month earnings multiple of 9.51X, at a discount to the industry average of 12.62X. The stock has a Value Score of B. The Zacks Consensus Estimate for AngloGold Ashanti'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 2.3% year-over-year growth. The same for earnings indicates a decline of 1.3%. EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. 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 AngloGold Ashanti PLC (AU): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Globe and Mail
04-07-2025
- Business
- Globe and Mail
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. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 AngloGold Ashanti PLC (AU): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report This article originally published on Zacks Investment Research (
