AngloGold Ashanti performed exceptionally well in Q2 25, driven by significant revenue growth and effective cost management. The successful acquisition of Augusta Gold Corp. further strengthens its portfolio. With robust earnings, improved gearing, and positive analyst sentiment, AngloGold Ashanti is well-positioned for continued leadership and value creation in the global gold mining industry.
AngloGold Ashanti plc, headquartered in Johannesburg, South Africa, was formed in 2004 through the merger of AngloGold and Ashanti Goldfields Corporation. As a UK-based global gold mining company, it operates in nine countries on four continents, focusing on a diverse portfolio of operations, projects, and exploration activities. The company produces gold, silver (Argentina), and sulfuric acid (Brazil) as by-products. Its operations span Africa (Kibali, Iduapriem, Obuasi, Siguiri, Geita), the Americas (Argentina, Brazil, Colombia, Nevada), and Australia (Sunrise Dam, Tropicana).
Notably, Kibali is managed by Barrick Gold Corporation. In the Americas, it has three operations and two greenfield projects in Colombia and Nevada. In Australia, its operations are located in the north-eastern goldfields of Western Australia. The company has around 12,600 employees.
Acquisition of Augusta Gold
AngloGold has successfully completed its acquisition of Augusta Gold Corp. from Augusta Investments Inc. and other shareholders. The deal, announced on July 16, 2025, valued Augusta Gold at $1.2 per share in cash, representing a 28% premium to Augusta’s closing price on the Toronto Stock Exchange a day before the announcement and a 37% premium to its 20-day volume-weighted average share price.
The transaction implies a fully diluted equity value of about $111m and an enterprise value of roughly $140m, including repayment of stockholder loans totaling $32.6m as of March 31, 2025.
Improved gearing
AngloGold reported strong top-line performance over FY 21-24, with a revenue CAGR of 12.9%, reaching $5.8bn in FY 24, driven by combination of higher realized gold prices, consistent production growth, and the accretive impact of recent acquisitions. EBITDA rose at a CAGR of 22.6% to $2.3bn, with margins expanding from 32.8% to 39.1%, largely due to the company’s stringent cost control and implementation of the Full Asset Potential program.
Consistent net income growth led FCF rose over FY 21-24, transitioning from minus $51.8m to +$535m. The operating cash inflows, also rose from $1.3bn to $2.0bn. Cash and cash equivalent also rose from $1.2bn to $1.4bn. In addition, the gearing improved from 51.6% to 25.3%.
In addition, AngloGold announced its Q2 25 robust revenue growth on August 1, 2025, driven by higher gold prices and effective cost management. The company saw significant revenue and profit increases, with expanded margins and boosted production volumes.
In comparison, Newmont Corporation, a local peer, reported a higher revenue CAGR of 18.7% over FY 21-24, reaching $936m in FY 24. EBITDA also rose at a higher CAGR of 25.8% to $8.9bn.
Robust stock returns
Over the past 12 months, the company’s stock has delivered impressive returns of approximately 120.3%. In comparison, Newmont Corporation’s stock delivered lower, albeit still impressive, returns of around 62.4% over the same period. The company paid an annual dividend of $0.9 in FY 24, resulting in a dividend yield of 3.9%.
AngloGold is currently trading at a P/E of 10.9x, based on the FY 25 estimated EPS of $5.7, which is higher than its 3-year historical average of 1.3x but lower than Newmont Corporation’s P/E of 11.8x. The company is currently trading at EV/EBITDA multiple of 5.4x, based on FY 25 estimated EBITDA of $5.7bn, which is in-line with its 3-year historical average of 5.4x but lower than that of Newmont Corporation (6.5x).
AngloGold is liked by five analysts who cover it, with each having ‘Buy’ ratings for an average target price of $88.3, implying 35.9% upside potential over the current market price.
Overall, AngloGold has demonstrated strong financial performance and strategic growth through effective cost management, acquisitions, and increased production. The company’s impressive earnings, improved gearing, and robust stock returns highlight its resilience and potential for future growth. With positive analyst ratings and promising revenue and profit projections, AngloGold Ashanti appears well-positioned for continued success in the competitive gold mining industry.
However, AngloGold faces risks from regulatory changes, market fluctuations, operational challenges, cybersecurity threats, environmental compliance, talent retention, political instability, and unexpected events, managed through an enterprise risk framework and Audit and Risk Committee reviews.
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