AU's Free Cash Flow Triples in FY25: Can the Momentum Sustain?

AngloGold Ashanti plcAU delivered a record $2.9 billion in free cash flow in 2025, a whopping 204% year-over-year rise. The upside is driven by AngloGold Ashanti’s continued cost discipline, higher production and higher gold prices.

The net cash inflow from operating activities was $4.78 billion in 2025, marking a 143% year-over-year upsurge from $1.97 billion. Along with higher gold prices, solid gold sales volumes from managed operations and increased dividends received from joint ventures also aided growth. These gains were, however, somewhat negated by higher total operating costs and increased tax payments.

The company reported available liquidity of $4.4 billion as of Dec. 31, 2025, with cash and cash equivalents of $2.9 billion. The company held adjusted net cash of $879 million at the end of Dec. 31, 2025, against adjusted net debt of $567 million held at the end of the prior year.

AngloGold Ashanti’s gold production increased 16% year over year. The upside in gold production was attributed to the contributions from the recently acquired Sukari mine and the solid performances of Obuasi, Siguiri, Geita, Cerro Vanguardia and Cuiabá.

Gold production for 2026 is projected at 2.80-3.17 million ounces. This suggests a year-over-year dip of 3% at mid-point due to cost pressures. The company expects 2027 production to be fairly at the same level as 2026, driven by continued ramp-up at Obuasi. 

Nonetheless, AU is gaining from the increase in gold prices in 2026 after having a solid performance in 2025. The prospects of solid production, driven by mine performances, as well as the solid rally in gold prices, indicate that the company will deliver higher earnings and cash flow in the near future.

Newmont CorporationNEM reported 2025 revenues of $22.8 billion, marking a year-over-year increase of 21.3%. It delivered a record free cash flow of $7.3 billion in 2025. For 2026, Newmont expects 5.3 million gold ounces, including 3.9 million gold ounces from Newmont's managed operations.

Agnico Eagle MinesAEM reported 2025 revenues of $11.91 billion, marking a year-over-year increase of 43.7%. It delivered a free cash flow of $4.40 billion in 2025. Agnico Eagle Mines’ three-year guidance reflects stable production. Agnico Eagle Mines expects production of 3.3-3.5 million ounces annually from 2026 to 2028.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti’s stock has rocketed 157.1% in a year, outperforming the Zacks Mining – Gold industry’s 80.4% upsurge. Meanwhile, the Basic Materials sector has jumped 27.6% and the S&P 500 has rallied 17.2%.

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The AU stock is currently trading at a forward 12-month earnings multiple of 9.27X, at a discount to the industry average of 10.26X.

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The Zacks Consensus Estimate for AngloGold Ashanti’s 2026 sales is $11.98 billion, indicating a 23.1% year-over-year jump. The consensus mark for the year’s earnings is pegged at $9.27 per share, suggesting a year-over-year surge of 72.6%.

The Zacks Consensus Estimate for 2027 sales implies a 14.3% year-over-year dip. The same for earnings suggests a slip of 1.8%.

EPS estimates for 2026 have moved 17.5% north over the past 60 days, while the same for 2027 has moved up 11.4% over the past 60 days.

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AU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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