Is Sukari Mine Solidifying as Key Driver for AngloGold Ashanti?

AngloGold Ashanti PLC AU delivered a 16% year-over-year increase in gold production in 2025. Along with solid performances of key assets, the upside was attributed to the solid full-year contribution from the Sukari mine in the African region.

The Sukari mine produced a record 500,000 ounces of gold in 2025, positioning itself as a Tier 1 asset for the company. The production increased 4% year over year despite the lower head grades challenges faced in the fourth quarter of 2025. The upside was driven by higher ore throughput, and better equipment availability and utilization.

The mine generated adjusted EBITDA of $1.3 billion in 2025 with total cash costs at $783 per ounce and all-in sustaining costs of $1,094 per ounce. In 2025, Sukari delivered a free cash flow of $475 million and a record cash flow of $2.9 billion.

Sukari, a large-scale, long-life, world-class asset, was added to AngloGold Ashanti’s portfolio following the takeover of Centamin in November 2024. Following a successful post-acquisition integration, Sukari now accounts for 16% of AU’s production total, rivaling key asset Geita, which also accounts for 16% currently.

As of Dec. 31, 2025, the Sukari mine’s gold mineral reserve was 2.36 million ounces. AU reported gold measured and indicated mineral resource of 1.86 million ounces and gold inferred mineral resource of 0.58 million ounces from the mine at the end of 2025.

The company is executing the Full Asset Potential program, under which it identifies further efficiency and growth opportunities for Sukari.

Like AU, its peer Kinross Gold Corporation KGC has a strong production profile and pipeline of projects. Tasiast is the highest-margin asset within Kinross Gold’s portfolio, with a consistently strong performance. Kinross Gold’s another strong asset Paracatu delivered a 25% year-over-year production increase in fourth-quarter 2025.

Newmont Corporation NEM is pursuing several projects, including the Cadia Panel Caves and Tanami Expansion 2 in Australia. In October 2025, Newmont reached a milestone at Ahafo North. Newmont achieved commercial production at the project, which followed the first gold pour in September 2025.

AU’s Price Performance, Valuations & Estimates

AngloGold Ashanti’s stock has rocketed 207% in a year, outperforming the Zacks Mining – Gold industry’s 108.5% upsurge. Meanwhile, the Basic Materials sector has jumped 38% and the S&P 500 has rallied 21.5%.

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The AU stock is currently trading at a forward 12-month earnings multiple of 10.47X, at a discount to the industry average of 12.03X.

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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%.

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EPS estimates for 2026 have moved 18.7% north over the past 60 days, while the same for 2027 has moved up 14.3% 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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Newmont Corporation (NEM): Free Stock Analysis Report

Kinross Gold Corporation (KGC): Free Stock Analysis Report

AngloGold Ashanti PLC (AU): Free Stock Analysis Report

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

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