ARMN vs. AAUC: Which Gold Mining Stock is the Better Pick Now?

Core Viewpoint - Aris Mining Corporation (ARMN) and Allied Gold Corporation (AAUC) are emerging gold producers in the Zacks Mining - Gold industry, both expanding production through operating mines and development projects across the Americas and Africa [2][3]. Aris Mining (ARMN) - Aris Mining produced 69,852 ounces of gold in Q4 2025, totaling 256,503 ounces for the year, a 22% increase year over year, exceeding the guidance range of 230,000-275,000 ounces [4][11]. - The Segovia mine is the primary driver of production growth, with an expected output of 265,000-300,000 ounces in 2026, up from 227,762 ounces in 2025 [5]. - The acquisition of the remaining 49% stake in the Soto Norte project positions Aris Mining as the sole owner, reaffirming it as a top undeveloped gold asset in the Americas [6]. - The Marmato operation is also a long-term growth engine, with expected production of 35,000-50,000 ounces in 2026, up from 28,741 ounces in 2025 [7]. - Aris Mining has a strong cash balance of $390 million at the end of Q4 2025, supporting ongoing investment in expansion projects [8]. - However, ARMN faces rising cost pressures, with all-in-sustaining costs (AISC) increasing 6.6% year over year to approximately $1,641 per ounce [9][11]. Allied Gold (AAUC) - Allied Gold produced 262,077 ounces of gold in the first nine months of 2025, slightly above the previous year's output, and anticipates production exceeding 375,000 ounces for the full year [12]. - The company is enhancing performance through drilling high-grade zones and improving mine models, with new equipment introduced at Sadiola to increase fleet availability [13]. - The Kurmuk mine in Ethiopia is a significant development project, targeting an average production of about 290,000 ounces per year, with plans to grow total resources to 5 million ounces over five years [14]. - AAUC is experiencing cost inflation, with total cost of sales increasing 20.7% year over year to $2,087 per gold ounce sold [15]. - The company has recorded weaker cash flow generation due to high capital expenditures, impacting profitability as margins are constrained by rising costs [16]. Financial Performance and Valuation - The Zacks Consensus Estimate for ARMN's 2025 earnings per share (EPS) indicates a growth of 311.8%, with estimates trending 3.7% upward over the past 60 days [17]. - For AAUC, the 2025 EPS estimate implies a year-over-year growth of 928.6%, with estimates increasing by 17.1% over the same period [18]. - In the past six months, ARMN's shares surged 194.5%, while AAUC stock gained 148.3% [20]. - ARMN is trading at a forward price-to-earnings ratio of 6.17X, below its median of 6.91X, while AAUC's forward earnings multiple is at 5.46X, higher than its median of 4.71X [22]. Conclusion - Aris Mining is well-positioned for long-term growth with a strong pipeline of projects and a solid cash position, while Allied Gold faces near-term challenges due to elevated costs and weaker cash flow [24][26].