AngloGold Ashanti vs. Harmony Gold: Which Gold Stock Shines More?

AngloGold Ashanti PLC AU and Harmony Gold Mining Co. Ltd. HMY are two prominent gold mining companies with a diversified portfolio of mines. Both AU and HMY are gaining from the surge in gold prices.

Gold prices are benefiting from safe-haven demand, heightened geopolitical risks and trade tensions. The prices of gold are currently trading near $4,990 per ounce. The yellow metal has advanced 63.6% in a year.

For investors seeking to ride this momentum, the question is: which stock offers better value? Let us examine the fundamentals, growth prospects and challenges for AngloGold Ashanti and Harmony Gold.

The Case for AU

AngloGold Ashanti, headquartered in Greenwood Village, CO, has operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo, Egypt, Ghana, Guinea and Tanzania. In October 2025, it bolstered its asset base with the acquisition of Augusta Gold Corp. This addition expands AU’s footprint in the Beatty District of Nevada through the acquisition of the Reward and Bullfrog properties.

AngloGold Ashanti also expanded its portfolio in November 2024 with the acquisition of Egyptian gold producer Centamin, adding the large-scale, long-life Sukari mine, which has the potential to produce 500,000 ounces annually. The Sukari mine produced a record 500,000 ounces of gold in 2025, positioning itself as a Tier 1 asset for the company.

AU’s adjusted EBITDA surged 129% year over year in 2025 to a record $6.3 billion. This was driven by a 16% year-over-year increase in gold production in the year and higher metal prices. 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, suggesting a year-over-year dip of 3% at the mid-point. Higher costs are also expected to weigh on the company’s performance in 2026.

The company has been facing headwinds from higher operating costs for the last few quarters due to inflationary cost pressures from increased labor and mining contractor costs. However, the impacts of these elevated costs on its earnings were offset by higher sales volumes and prices.

AngloGold Ashanti generated a record $2.9 billion in free cash flow in 2025, a 204% year-over-year whopping rise. The company ended the year with $4.4 billion in liquidity, including cash and cash equivalents of $2.9 billion.

AU remains focused on its Full Asset Potential program to offset the inflationary impacts. AngloGold Ashanti’s significant exploration success over the past five years has added 23.1 million ounces to its gold mineral reserve (including acquisitions and before accounting for depletion). At the end of Dec. 31, 2025, the company’s gold mineral reserve was 36.5 million ounces, marking the ninth consecutive year of annual increase in gold mineral reserve.

The Case for HMY

Harmony Gold is South Africa's biggest gold producer by volume, with production of 724,099 ounces in the first half of fiscal 2026. The company has been delivering over a decade of production consistency and is currently on track to meet fiscal 2026 guidance of 1.4 million to 1.5 million ounces. In fiscal 2025, the company produced 1.48 million ounces.

The company’s adjusted EBITDA increased 39% year over year in the first half of fiscal 2026, ending on Dec. 31, 2025.
Harmony Gold has a diverse portfolio of gold development projects spread across South Africa and Papua New Guinea. Harmony Gold is also progressing with development projects, including the Eva Copper project in Australia and its Tier 1 joint venture asset, the Wafi-Golpu copper-gold project. HMY is focused on strengthening its position as a higher-quality, lower-risk global gold and copper producer, which will be aided by these projects.

Harmony Gold acquired the CSA Copper Mine in Australia in October 2025 and has been focused on integrating the mine into the company’s operating standards. CSA is the highest-grade copper mine in Australia with expansion potential.

However, the company faces headwinds from higher costs. In the first half of fiscal 2026, the all-in sustaining cost increased 21% year over year. The company’s all-in sustaining cost guidance for fiscal 2026 indicates a year-over-year increase, suggesting inflationary pressure and higher sustaining capital expenditure.

Nonetheless, Harmony Gold boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects and drive shareholder value. Its net debt/EBITDA was at 0.18X and liquidity was $895 million at the end of Dec. 31, 2025.

How Do Estimates Compare for AU & HMY?

The Zacks Consensus Estimate for AngloGold Ashanti’s 2026 earnings is pegged at $9.27 per share, indicating a year-over-year upsurge of 72.6%. The estimates for 2026 have been trending north over the past 60 days.

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The Zacks Consensus Estimate for Harmony Gold’s earnings for 2026 is pegged at $2.65 per share, indicating a year-over-year jump of 108.7%. The estimates for both years have been trending south over the past 60 days.

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AU & HMY: Price Performance & Valuation Comparisons

In the past year, the AU stock has skyrocketed 194.6%, whereas HMY has climbed 28.7%.

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HMY is currently trading at a forward 12-month earnings multiple of 5.68X, lower than its five-year median. AU is currently trading at a forward 12-month earnings multiple of 10.42X, lower than its five-year median.

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AU or HMY: Which Is the Better Pick?

Both AngloGold Ashanti and Harmony Gold are well-positioned to benefit from the ongoing rally in gold prices, along with their efforts to grow their production capabilities.

AngloGold Ashanti has delivered a stronger one-year price performance than HMY. In addition, AU’s recent upward estimate revision, in contrast to HMY’s downward trend, gives it an edge. Given these factors, AU appears to be a more compelling investment choice right now. HMY currently carries a Zacks Rank #4 (Sell), whereas AU carries 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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AngloGold Ashanti PLC (AU): Free Stock Analysis Report

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

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