AU Stock Soars 266% YTD: What's the Right Strategy for Investors Now?

AngloGold Ashanti PLC’s AU stock has rocketed 265.7% year to date, outperforming the Zacks Mining – Gold industry’s 132.7% upsurge. Meanwhile, the Basic Materials sector has risen 27.2%, and the S&P 500 has rallied 20.1% in the same timeframe.AU Stock's YTD Performance vs. Industry, Sector & S&P 500  Image Source: Zacks Investment Research The company also surpassed other gold mining stocks like Agnico Eagle Mines AEM and Newmont Corporation NEM, which have soared 115.3% and 157%, respectively, so far this year.AU’s YTD Performance vs. AEM & NEM  Image Source: Zacks Investment Research With the AU stock riding high, investors may rush to add it to their portfolio. However, before making a decision, it will be prudent to take a look at the reasons behind the surge, the company’s growth prospects and risks (if any) in investing.AU Posts Solid Q3 Results Despite High Operating CostsAngloGold Ashanti’s adjusted EBITDA rose 9% in the third quarter of 2025 to $1.56 million. This was driven by a 17% year-over-year increase in gold production in the quarter 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, Kibali, Geita and Cuiabá.Gold revenues surged 61.9% to $2.37 billion in the quarter with earnings per share skyrocketing 136% to $1.32.However, AU has been facing headwinds from higher operating costs for the last few quarters. Total cash costs per ounce for the group rose 5% year over year to $1,225 in the third quarter of 2025. All-in-sustaining costs per ounce increased 6% to $1,720. The upside was 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.Newmont reported third-quarter 2025 adjusted earnings of $1.71 per share, up from 81 cents in the prior-year quarter. NEM’s revenues for the third quarter were $5.52 billion, up roughly 20% from $4.61 billion in the prior-year quarter. Agnico Eagle Mines posted adjusted earnings of $2.16 per share for the third quarter of 2025, up from $1.14 in the year-ago quarter. Agnico Eagle Mines generated revenues of $3.06 billion, up 41.9% year over year.AngloGold Ashanti’s Liquidity Position StrongThe company generated a record $920 million in free cash flow in the third quarter, a 141% year-over-year whopping rise. The adjusted net debt to adjusted EBITDA ratio improved to 0.09X in the third quarter from 0.37X in the year-ago quarter. AngloGold Ashanti ended the quarter with $3.9 billion in liquidity, including cash and cash equivalents of $2.5 billion.AU’s Gold Production Outlook UpbeatGold production for 2025 is projected at 2.9-3.225 million ounces. This suggests year-over-year growth of 9-21%. For 2026, the company expects similar output levels to those in 2025.AngloGold Ashanti Focuses on Long-term GrowthAU is executing a clear strategy of organic and inorganic growth. The acquisition of Egyptian gold producer Centamin in November 2024 added the large-scale, long-life, world-class Tier 1 asset, Sukari, to its portfolio. It has the potential to produce 500,000 ounces annually. Sukari has already established itself as a top producer in the company’s portfolio and added 129,000 ounces and 135,000 ounces of gold in the second and third quarters of 2025, respectively.The company closed the Augusta Gold Corp acquisition on Oct. 25, boosting its footprint in the Beatty District of Nevada, which is in one of the most significant emerging gold districts in the United States.The company is also moving forward with its investment strategy, with additional capital expenditure approved for this year at its Geita Gold Mine in Tanzania. AU has also planned investments of $100 million over the next three years for the expansion of the mine. The company will raise annual exploration spend at the mine from around $35 million to $50 million. The ongoing investment aims to increase Geita’s mineral reserves by 60%, which will extend the mine life from seven years to at least a decade by 2028.Obuasi remains a significant pillar of its long-term strategy, which is expected to deliver 400,000 ounces of annual production at competitive costs by 2028. At the Siguiri mine, efforts are underway to improve mining volumes through ongoing improvements to fleet availability and utilization, and to introduce gravity recovery in the processing plant to further improve metallurgical recovery. Apart from these factors, AU is gaining from the increase in gold prices in 2025. Gold prices have increased 54.5% year to date. The metal has been supported by geopolitical tensions, tariff concerns and continuous purchasing by central banks. Gold prices are currently trending above $4,200 per ounce, backed by expectations of further interest rate cuts.AU Sees Positive Estimate Revision ActivityThe Zacks Consensus Estimate for AngloGold Ashanti’s 2025 sales is $9.67 billion, indicating a 66.9% year-over-year jump. The consensus mark for the year’s earnings is pegged at $5.51 per share, indicating a year-over-year upsurge of 149.3%.  Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2026 sales implies a 13.3% year-over-year dip. The same for earnings suggests growth of 16.8%.EPS estimates for 2025 have moved 3.8% north over the past 60 days, while the same for 2026 has moved up 29.6% over the past 60 days.  Image Source: Zacks Investment Research AngloGold Ashanti’s Valuation Is AttractiveThe AU stock is currently trading at a forward 12-month earnings multiple of 12.49X, which is a discount to the industry average of 12.73X.  Image Source: Zacks Investment Research Meanwhile, Agnico Eagle Mines and Newmont are trading higher at 17.81X and 13.27X, respectively.Final Take on AU StockAngloGold Ashanti is poised to benefit from the current increase in gold prices and higher production expectations. Its efforts to streamline its portfolio and lower debt levels are also commendable. With an appealing valuation and upward earnings estimate revisions, now appears to be a favorable time to consider adding the stock to your portfolio.This is further supported by its Zacks Rank #1 (Strong Buy). 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Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks