AU vs. AGI: Which Gold Mining Stock Is the Better Buy Right Now?

Core Insights - AngloGold Ashanti PLC (AU) and Alamos Gold Inc. (AGI) are benefiting from record-high gold prices, currently trading at nearly $4,900 per ounce, with a year-over-year increase of 76.4% [1] Group 1: AngloGold Ashanti (AU) - AU has operations in multiple countries including Argentina, Australia, and Ghana, and expanded its asset base by acquiring Augusta Gold Corp. in October 2025 [3] - The acquisition of Centamin in November 2024 added the Sukari mine, which has the potential to produce 500,000 ounces annually, contributing 135,000 ounces in Q3 2025 [4] - AU reported a 17% year-over-year increase in gold production to 768,000 ounces in Q3 2025, with adjusted EBITDA rising 109% to $1.56 billion and gold revenues increasing 61.9% to $2.37 billion [5] - The company expects gold production of 2.9-3.225 million ounces for 2025, indicating a year-over-year growth of 9-21% [6] - Operating costs have risen, with total cash costs per ounce increasing 5% to $1,225 and all-in-sustaining costs (AISC) up 6% to $1,720 [7] - AU generated a record $920 million in free cash flow in Q3 2025, a 141% year-over-year increase, and ended the quarter with $3.9 billion in liquidity [8] - The company is focused on its Full Asset Potential program to mitigate inflationary impacts and is streamlining operations, including selling higher-cost assets [9] - Obuasi mine remains a significant contributor to AU's production strategy, with expectations of delivering 400,000 ounces annually by 2028 [10] Group 2: Alamos Gold Inc. (AGI) - AGI, based in Canada, acquired Argonaut Gold in July 2024, gaining access to the Magino mine adjacent to its Island Gold mine [12] - The company is advancing its Island Gold Phase 3+ Expansion, expected to double mill throughput to 2,400 tons per day by the second half of 2026 [13] - AGI reported a 3.8% year-over-year production decline in 2025, attributed to lower output from the Island Gold District and Young-Davidson [14] - The cash position for AGI was $623 million in 2025, a 91% year-over-year increase, with $50 million of debt repaid in Q4 [15] Group 3: Financial Estimates and Comparisons - The Zacks Consensus Estimate for AU's 2025 earnings is $5.51 per share, reflecting a year-over-year increase of 149.3%, with estimates for 2026 at $7.81, indicating a 41.8% rise [16] - For AGI, the 2025 earnings estimate is $1.47 per share, showing an 83.7% year-over-year jump, with 2026 estimates at $2.23, implying growth of 51.6% [17] - AU's stock has increased 301.4% over the past year, while AGI's stock has risen 105.9% [18] - AGI is trading at a forward earnings multiple of 18.11X, while AU is at 13.67X, both higher than their five-year medians [20] - AU is viewed as a more compelling investment choice due to stronger price performance and cheaper valuation compared to AGI [22][23]