AU Trades at a Discount to Industry: Right Time to Buy the Stock?

Core Insights - AngloGold Ashanti PLC (AU) stock is trading at a forward 12-month earnings multiple of 11.58X, which is below the industry average of 14.58X [1][7] - The stock has increased by 279.8% over the past year, outperforming the industry and sector averages [4][8] Valuation and Performance - AU's valuation is attractive compared to peers like Agnico Eagle Mines (AEM) at 19.28X and Newmont Corporation (NEM) at 15.12X [3][7] - The company generated a record free cash flow of $920 million in Q3 2025, a 141% increase year-over-year [15] Financial Results - Adjusted EBITDA rose 9% in Q3 2025 to $1.56 million, driven by a 17% increase in gold production and higher metal prices [11] - Gold revenues surged 61.9% to $2.37 billion in Q3 2025, with earnings per share increasing 136% to $1.32 [12] Production Outlook - Gold production for 2025 is projected to be between 2.9 million and 3.225 million ounces, indicating a year-over-year growth of 9-21% [17] - The company expects similar output levels for 2026 [17] Strategic Growth Initiatives - AngloGold Ashanti is pursuing both organic and inorganic growth, including the acquisition of Centamin and Augusta Gold Corp [18][19] - The company plans to invest $100 million over the next three years for the expansion of the Geita Gold Mine [20] Market Position and Estimates - The Zacks Consensus Estimate for 2025 sales is $9.85 billion, reflecting a 70.1% year-over-year increase, with earnings estimated at $5.51 per share, a 149.3% rise [22] - The 2026 sales estimate suggests a 22.5% year-over-year growth [23]