AngloGold Ashanti Surges 6% on Revenue Beat and Strong Gold Output Despite EPS Miss

• Roth Capital upgraded AngloGold Ashanti (NYSE:AU) to a "Buy" rating and increased the price target from $54 to $57.
• The company is expected to report a significant 118% year-over-year increase in earnings for Q2 2025, with earnings per share now estimated at $1.31.
• Despite a history of negative earnings surprises, AngloGold Ashanti has managed to keep its cash costs under control, showcasing only a 1% increase over four years.

AngloGold Ashanti (NYSE:AU) is a prominent player in the gold mining industry, with operations spanning across several continents. The company is known for its extensive mining activities and has a significant presence in Africa, Australia, and the Americas. AngloGold Ashanti competes with other major gold producers like Barrick Gold and Newmont Corporation.

On August 1, 2025, Roth Capital upgraded AngloGold Ashanti's stock to a "Buy" rating. At the time, the stock was priced at $48.52. Roth Capital also increased the price target from $54 to $57, indicating confidence in the company's future performance. This upgrade aligns with the anticipated strong second-quarter earnings, driven by high gold prices and robust production levels.

AngloGold Ashanti is expected to report a significant 118% year-over-year increase in earnings for Q2 2025. Analysts have raised the Zacks Consensus Estimate for AU's earnings by 2% over the past month, now standing at $1.31 per share. This growth is largely attributed to the Sukari mine, which contributed 117,000 ounces to the first-quarter output and is expected to boost the second-quarter results further.

The company has managed to keep its cash costs under control, with only a 1% increase over four years. This is a notable achievement compared to many of its major gold mining peers. Despite these positive indicators, AngloGold Ashanti has a history of negative earnings surprises, averaging 8.26% over the past four quarters. This history may temper some investor enthusiasm despite the current positive outlook.

Currently, AU's stock is priced at $48.35, reflecting a 4.54% increase with a price change of $2.10. The stock has fluctuated between $46.70 and $49.24 today. Over the past year, AU has seen a high of $51.93 and a low of $22.45. The company's market capitalization is approximately $24.35 billion, with a trading volume of 2,993,111 shares, indicating active investor interest.

• Analysts project a 118% year-over-year increase in earnings for NYSE:AU, with an earnings per share forecast of $1.31.
• The company's performance is buoyed by elevated gold prices and strong production levels, particularly from the Sukari mine.
• Despite a history of earnings surprises, AngloGold Ashanti's financial ratios such as the P/E ratio of 17.19 and a debt-to-equity ratio of 0.33 indicate a stable financial position.

AngloGold Ashanti, trading as NYSE:AU, is a prominent player in the gold mining industry. The company is set to release its quarterly earnings on August 1, 2025. Analysts expect earnings per share to be $1.31, with projected revenue of approximately $2.32 billion. This release is highly anticipated, given the company's recent performance and market conditions.

The expected increase in earnings is largely attributed to elevated gold prices and strong production levels. Analysts project a 118% year-over-year increase in earnings, with the Zacks Consensus Estimate for AU's earnings rising by 2% over the past month to $1.31 per share. The Sukari mine, contributing 117,000 ounces in the first quarter, is expected to further boost second-quarter results.

Despite the positive outlook, an earnings beat remains uncertain. The company has a history of a trailing four-quarter negative earnings surprise averaging 8.26%. However, AngloGold Ashanti has managed to maintain tight control over its cash costs, with only a 1% increase over four years, outperforming many of its major gold mining peers.

Financially, AU has a price-to-earnings (P/E) ratio of approximately 17.19, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 3.25, reflecting the value placed on each dollar of the company's sales. The enterprise value to sales ratio is around 3.34, suggesting the company's total value relative to its sales.

The enterprise value to operating cash flow ratio is approximately 9.64, showing how the company's valuation compares to its cash flow from operations. With an earnings yield of 5.82%, AU offers a return on investment relative to its share price. The debt-to-equity ratio is 0.33, indicating a relatively low level of debt compared to equity. Additionally, the current ratio is 2.34, suggesting the company has a strong ability to cover its short-term liabilities with its short-term assets.

AngloGold Ashanti (NYSE:AU) rose more than 6% intra-day today after the miner reported first-quarter revenue that surpassed expectations, fueled by higher gold production and stronger prices.

The company posted revenue of $1.93 billion, exceeding analyst forecasts of $1.86 billion. Gold production climbed 22% year-over-year to 720,000 ounces, while the average realized gold price surged 39% to $2,874 per ounce.

Despite the revenue strength, earnings per share came in at $0.88, missing estimates by $0.04. Cost pressures were contained, with total cash costs rising 4% to $1,223 per ounce and all-in sustaining costs edging up 1% to $1,640 per ounce.

The company reaffirmed its full-year 2025 guidance, targeting gold production of 2.9–3.225 million ounces at all-in sustaining costs between $1,580 and $1,705 per ounce—maintaining confidence in its operational and financial trajectory for the year.