Latest news with #KinrossGold
Globe and Mail
6 days ago
- Business
- Globe and Mail
Kinross Gold Commences 2025 Drill Program at Riley Gold's PWC Gold Project (Cortez District - Nevada)
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2025) - Riley Gold Corp. (TSXV: RLYG) (OTCQB: RLYGF) (" Riley Gold" or the " Company") is pleased to announce that the 2025 drilling campaign is underway at the Company's Pipeline West/Clipper Gold Project (" PWC") operated by Kinross Gold U.S.A., Inc. (" Kinross"), a wholly-owned subsidiary of Kinross Gold Corporation (TSX: K) (NYSE: KGC). "We are happy that Kinross is ahead of schedule and to have the 2025 drilling well underway at PWC. As highlighted in our April 29, 2025 news release, the Kinross technical team along with Riley Gold's Paul Dobak, have defined high-priority framework drill targets in the highest-grade gold-in-soils anomaly known area on the property. These are exciting targets, based on geological and geophysical data interpretation, in areas that have never been drill tested within our 25 square km land package. Our PWC project is within the Cortez District that has a significant history of gold production and current reserves. PWC adjoins Nevada Gold Mines LLC (" NGM"), a joint venture between Barrick Gold Corp. and Newmont Corporation, that has current production within their Cortez/Pipeline complex," commented Todd Hilditch, CEO of Riley Gold. 2025 Kinross Exploration Plan and Map A comprehensive geologic model was built for comparison with the many Cortez Districts >5.0-million-ounce gold discoveries. The new step-out wide spaced framework drill holes are being spotted approximately 2.5 kilometers (" km") (up to 8,200 feet) northwest of the first Kinross drill hole in 2024 (see Figure 1 below) and include northwest vectoring to the highest-grade surface geochemical gold anomalies from the soil survey near the intersection of two major structures. The primary target is a large, disseminated gold deposit peripheral to the Gold Acres stock, which is the geologic setting for NGM's Pipeline gold deposit (see Figure 2 property location). Compiled geologic mapping, geophysical surveys, historical drill results, and gold-in-soil survey results uploaded in Leapfrog software support the new 2025 drill hole locations. Recent geologic modeling and interpretation by Kinross also provides a supporting structural foundation and information for the 2025 Drill Program. Additional soil sampling is planned by Kinross for the 2025 field season to increase surface geochemical coverage adjacent to the 2023 soil survey completed by Riley Gold. The previous soil survey returned significant anomalous gold-in-soil values that extended more than 3 km. Several pathfinder elements, associated with both Carlin-type and intrusive-related gold deposits, were also elevated in the first soil survey. Riley Gold entered into an exploration and venture option agreement (the " Agreement") with Kinross on March 13, 2024. The Agreement grants Kinross the right to earn up to a 75% interest in Riley Gold's PWC project by spending a minimum of US$20 million (see news release dated March 14, 2024 for details). PWC is located in Lander County, Nevada and consists of approximately 24.7 km² in the heart of the significant gold producing Cortez District (Battle Mountain - Eureka Trend). Kinross is funding and operating PWC and has a strategic 9.9% (on a partially diluted basis) equity interest in the Company acquired through a private placement. About PWC PWC constitutes a very prospective exploration property for Carlin-type, disseminated and replacement gold deposits. PWC consists of a land package totaling approximately 24.7 square kms of unpatented mining claims and patented fee lands adjoining NGM. PWC is situated along the Cortez Structural Zone of the exceptionally productive Cortez Trend within the Battle Mountain - Eureka Trend in north central Nevada (Figure 2). The Cortez and Pipeline complexes (adjoining Riley's PWC project boundary) are top producers within Nevada, a State that has consistently produced between 4-5 million ounces of gold a year. To view an enhanced version of this graphic, please visit: Tokop Gold Project The Company also wishes to report that it has terminated all agreements related to its Tokop Gold Project and has relinquished the property. Previous drilling on the property did not provide results that warranted continued exploration under current junior market conditions. The Company is electing to preserve cash and reduce costs. Qualified Person This news release has been reviewed and approved by Richard DeLong, Director of Riley Gold and a 'qualified person', as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. About Riley Gold Corp. Riley Gold is an exploration and development company focused in Nevada, USA, of the Pipeline West/Clipper Gold Project located in the Battle Mountain Eureka Trend within the Cortez District. Riley Gold's founders and leadership team have a proven track record of maximizing shareholder value during each phase of the mining life cycle: exploration, development, and production. FOR FURTHER INFORMATION, PLEASE CONTACT: Todd Hilditch Chief Executive Officer Tel: (604) 443-3831 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary statement regarding forward-looking information This press release contains statements which constitute "forward-looking information" under applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current expectations of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking information. Although Riley Gold believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Riley Gold can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties and the Company's future business activities may differ materially from those in the forward-looking information as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions and the ability to obtain the requisite approvals of the TSX Venture Exchange when necessary. Investors are cautioned that any such forward-looking information is not a guarantee of future business activities and involves risks and uncertainties. Additional information on these and other factors that could affect Riley Gold operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Globe and Mail
26-05-2025
- Business
- Globe and Mail
Kinross Gold Rallies 39% in 3 Months: Should You Buy the Stock Now?
Kinross Gold Corporation 's KGC shares have shot up 38.5% in the past three months, outperforming the Zacks Mining – Gold industry's gain of 25.8% and the S&P 500's decline of 1.2%. The bullishness appears to have been catalyzed by its better-than-expected earnings performance on the back of higher gold prices. KGC's gold mining peers, Barrick Mining Corporation B, Newmont Corporation NEM and Agnico Eagle Mines Limited AEM, have gained 7.2%, 27.4% and 23.7%, respectively, over the same period. KGC's 3-month Price Performance Technical indicators show that KGC has been trading above the 200-day simple moving average (SMA) since March 6, 2024. The stock is also currently trading above its 50-day SMA. The 50-day SMA continues to read higher than the 200-day moving average, indicating a bullish trend. Kinross Trades Above 50-Day SMA Is the time right to buy KGC's shares for potential upside? Let's take a look at the stock's fundamentals. Key Development Projects to Incite KGC's Growth Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation. Tasiast and Paracatu, the company's two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu saw a strong start to the year, with first-quarter production rising on strong grades and improved mill recoveries. Kinross' Solid Financial Health Bodes Well KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. The company ended the first quarter with solid liquidity of roughly $2.3 billion. Kinross also generated record free cash flows of around $1.3 billion in 2024, driven by the strength in gold prices and strong operating margins. Free cash flow also more than doubled year over year to $370.8 million in the first quarter. KGC repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter, reducing its net debt to around $540 million. Its long-term debt-to-capitalization is 14.4%. Higher gold prices should boost KGC's profitability and drive cash flow generation. While gold prices have fallen from their April 2025 highs amid U.S.-China trade negotiations and easing U.S. inflation, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Gold prices have gained roughly 28% this year, driven by the aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices. Further, KGC offers a dividend yield of 0.8% at the current stock price. It has a payout ratio of 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived to be safe and reliable. Positive Analyst Sentiment for KGC Stock Earnings estimates for KGC have been rising over the past 60 days, reflecting analysts' optimism. The Zacks Consensus Estimate for 2025 and 2026 has been revised upward over the same time frame. The Zacks Consensus Estimate for 2025 earnings is currently pegged at $1.09, suggesting year-over-year growth of 60.3%. Earnings are also expected to register roughly 11.1% growth in 2026. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research A Look at Kinross Stock's Valuation KGC is currently trading at a forward price/earnings of 12.93X, a modest 6.5% discount compared with the industry's average of 13.83X. It is trading at a premium to Barrick and Newmont and a discount to Agnico Eagle. Both Kinross and Barrick have a Value Score of A, while Newmont has a Value Score of B and Agnico Eagle has a Value Score of C. KGC's P/E F12M Vs. Industry, B, NEM & AEM How Should Investors Play the KGC Stock? With a strong pipeline of development projects and solid financial health, KGC presents a compelling investment case for those seeking exposure to the gold mining space. Rising earnings estimates and a healthy growth trajectory are the other positives. A favorable gold pricing environment also augurs well. We recommend investors accumulate this Zacks Rank #1 (Strong Buy) stock as it has upbeat growth prospects. You can see the complete list of today's Zacks #1 Rank stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Business Insider
25-05-2025
- Business
- Business Insider
Analysts' Opinions Are Mixed on These Materials Stocks: Kinross Gold (KGC), Sherwin-Williams Company (SHW) and Dow Inc (DOW)
Companies in the Materials sector have received a lot of coverage today as analysts weigh in on Kinross Gold (KGC – Research Report), Sherwin-Williams Company (SHW – Research Report) and Dow Inc (DOW – Research Report). Confident Investing Starts Here: Kinross Gold (KGC) In a report issued on May 7, Matt Murphy from BMO Capital maintained a Buy rating on Kinross Gold, with a price target of C$22.00. The company's shares closed last Friday at $14.71. According to Murphy is a 5-star analyst with an average return of 20.3% and a 69.1% success rate. Murphy covers the Basic Materials sector, focusing on stocks such as Wheaton Precious Metals, First Quantum Minerals, and Pan American Silver. Kinross Gold has an analyst consensus of Strong Buy, with a price target consensus of $16.53, representing an 11.4% upside. In a report issued on April 23, National Bank also maintained a Buy rating on the stock with a C$25.00 price target. Dow Inc (DOW) Dow Inc received a Hold rating and a $29.00 price target from BMO Capital analyst John McNulty on May 7. The company's shares closed last Friday at $28.32. According to McNulty is a 3-star analyst with an average return of 1.0% and a 50.8% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Sherwin-Williams Company, and Axalta Coating Systems. Dow Inc has an analyst consensus of Hold, with a price target consensus of $31.87, a 13.2% upside from current levels. In a report issued on April 24, Alembic Global also maintained a Hold rating on the stock with a $34.00 price target.
Yahoo
22-05-2025
- Business
- Yahoo
Kinross Gold and BP have been highlighted as Zacks Bull and Bear of the Day
Chicago, IL – May 22, 2025 – Zacks Equity Research shares Kinross Gold KGC as the Bull of the Day and BP PLC BP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SLB SLB, Halliburton HAL and Baker Hughes BKR. Here is a synopsis of all five stocks: I know what you're thinking. Gold stocks? In this environment? But hear me out. While the headlines are all about AI and big tech, there's an undercurrent building, one that could make Kinross Gold the golden child of your portfolio. That's why I'm naming it today's Bull of the Day. Kinross Gold is a senior gold mining company with a diverse portfolio of mines in the United States, Brazil, Chile, Mauritania, and Canada. Unlike some of its peers, Kinross doesn't just dig holes and hope for the best. They've focused on operational efficiency, cost control, and strategic asset optimization, all of which are showing up in the numbers. Analysts have taken notice. Over the last 60 days, four analysts have increased their earnings estimates for the current year, and four have done the same for next year. That's the kind of revision activity that drives our proprietary Zacks Rank. The Zacks Consensus Estimate for 2024 is now sitting at $1.04, up from 77 cents just two months ago. That might not sound like a lot, but in the world of miners where margins can be razor-thin, this kind of upside momentum is critical. Nest year's number is up from 80 cents to $1.16. That means current year EPS growth now calls for 52.94% growth while next year is expected to swell another 12.3% to $1.16. Let's not ignore what's happening in the broader macro environment. Gold has been blasting through record highs, and while some of that's tied to short-term safe-haven demand, there's a longer-term play developing. The Fed is likely to act soon and when that happens, the dollar weakens and real yields come down, both of which are rocket fuel for gold prices. Kinross, with its all-in sustaining costs (AISC) trending toward the lower end of the peer group, is poised to benefit disproportionately from every incremental uptick in the price of gold. If gold stays above $2,300/oz, Kinross won't just be profitable, it'll be wildly profitable. You'd think that will all of us running to the gas station a few times a week, that energy companies would be raking in the cash. It should make the whole sector a slam dunk, especially with attractive yields. However, that simply hasn't been the case for many of these stocks. The drag of lower oil prices has been putting some pressure on these stocks. These include today's Bear of the Day, BP PLC. BP has long tried to rebrand itself as a cleaner, greener energy company. Admirable, sure—but the market isn't rewarding ESG lip service when it comes at the expense of operational focus. While peers like Exxon and Chevron are doubling down on efficient fossil fuel production, BP has been pivoting toward renewables with mixed results. The problem? That transition isn't cheap, and it's dragging on margins. The most glaring issue here is earnings estimate revisions. Over the last 60 days, eight analysts have slashed their forecasts for the current fiscal year. The Zacks Consensus Estimate for the current year is now down to $2.38 from $3.53. That kind of downward pressure is the kiss of death for a stock in our ranking model, pushing BP into the dreaded Zacks Rank #5 (Strong Sell) territory. The yield is still nice though at 6.51%. There are other stocks within the Oil and Gas – Integrated – International Peers industry which are in the good graces of our Zacks Industry Rank. There are many names which are Zacks Rank #3 (Hold) stocks as well. The oilfield services industry is once again facing a cyclical downturn, shaped by falling oil prices, reduced upstream spending, and mounting cost pressures. Companies like SLB, Halliburton and Baker Hughes have all flagged a more challenging 2025, even as a few resilient areas offer some support. Falling Oil Prices Are Tightening Budgets: WTI's slide below $60 has triggered significant revisions to exploration and production (E&P) budgets. Independent producers like Diamondback Energy have already cut their 2025 capital budget by $400 million, while Coterra Energy plans to reduce its Permian rig count by 30% in the second half. With many shale drillers citing $65 as the breakeven point, every dollar below that takes a toll on profitability and service demand. With producer budgets under real pressure for the first time in years, drilling activity is beginning to slow, impacting oilfield service contractors across the board. Tariff Pressures Are Fueling Cost Inflation: Trade tensions have re-emerged as a major concern. SLB warned that nearly half of its operations are exposed to tariffs, especially those involving materials shipped between the United States and China. Baker Hughes said tariffs could impact 2025 EBITDA by as much as $200 million. Halliburton projected a 2-3 cent EPS hit in Q2 alone. As equipment costs climb, margin pressure builds. the Zacks Rank #3 (Hold) firm even raised concerns about producers pushing back on higher-priced equipment, especially in U.S. land markets. You can see the complete list of today's Zacks #1 Rank stocks here. North America Slows, While International Recovery Wobbles: North American oilfield activity has slowed significantly, with the downturn expected to stretch into the second quarter. As a proof of this, Halliburton's revenue in the region fell 12% year-over-year to $2.2 billion in the first quarter, and lower stimulation activity and completion tool sales led to a sharp margin decline in its Completion & Production division. Analysts now forecast rig count declines in the high-single digits and double-digit reductions in dayrates, which could compress margins by a fourth next year. The international landscape isn't faring much better. SLB reported a 5% drop in Q1 international revenues, with Latin America down 10%. Slow starts in key regions like Mexico, Saudi Arabia, and offshore Africa are weighing on recovery momentum. Reflecting this broad softness, BKR sees global spending to fall mid-to-high single-digit in 2025. LNG and AI Data Center Demand Offer Bright Spots: Even amid the slowdown, some verticals are flashing green. LNG infrastructure and data center demand continue to attract investment. Baker Hughes expects to book at least $1.5 billion in data center-related orders over three years. These projects, less sensitive to near-term oil price volatility, are helping companies cushion the blow. Power grid upgrades and natural gas infrastructure — especially in regions like UAE, Brazil, and Asia Pacific — are likely to keep certain service pockets active. Margin Compression May Delay Investor Interest: Despite historically low valuations, investor enthusiasm remains muted. Some drilling contractors are projected to deliver modest free cash flow yields over 2025-2026. Adding to the hesitation is the unclear timeline for the next upcycle. With margins under pressure and efficiency gains already baked in, many investors are holding back, waiting for clearer signs of stabilization before stepping back in. The oilfield services sector seems to be caught in a downturn, with soft commodity prices, weaker producer budgets, and tariff-related inflation driving slower activity across both North American and international markets. While LNG and AI-related infrastructure offer isolated growth, the broader picture remains mixed. Companies are bracing for flat or declining revenues, cost deflation, and uncertain pricing power, suggesting that investors may need to be patient through another bumpy stretch in the cycle. Moreover, the Zacks Oil and Gas Field Services industry currently ranks in the bottom 32% out of 245 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next few months. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report Schlumberger Limited (SLB) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Kinross Gold Corporation (KGC) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
20-05-2025
- Business
- Globe and Mail
AngloGold Ashanti Trading Cheaper Than Industry: Buy the Stock?
AngloGold Ashanti PLC AU stock is trading at a forward price/earnings of 11.42X, a roughly 16% discount to the Zacks Mining – Gold industry's average of 14.27X. It also has a Value Score of B. The stock also remains attractively priced compared with peers such as Newmont Corporation NEM, Agnico Eagle Mines Limited AEM and Kinross Gold Corporation KGC. AU's Valuation Vs. NEM, AEM & KGC Is AU a smart buy based on its current valuation? Let's dig deeper. AngloGold Ashanti Stock Outpaces Industry The AngloGold Ashanti stock has appreciated 85.9% year to date, outperforming the industry's 39.1% gain. Meanwhile, the Basic Materials sector has risen 6.4% and the S&P 500 has edged up 0.7%. AU has also delivered stronger returns than Newmont, Agnico Eagle Mines and Kinross Gold Corporation, as illustrated in the chart below. Factors That Will Keep AngloGold Ashanti on a Growth Path Solid Financial & Operational Results in Q1: The company reported first-quarter 2025 results on May 9. Earnings per share soared 529% year over year to 88 cents, driven by higher gold production, disciplined cost control and higher gold prices through the quarter. Gold production increased by 22% to 720,000, marking its strongest first-quarter performance since 2020. This reflected the first full-quarter contribution of 117,000 ounces from the recently acquired Sukari mine, as well as upbeat performances at Siguiri, Tropicana, Cerro Vanguardia and Sunrise Dam. The average realized gold price surged 39% year over year to $2,874 per ounce. Adjusted EBITDA increased 158% year over year to $1.12 billion in the first quarter of 2025 from $434 million in the prior year quarter. Total cash costs per ounce for the group, however, were up 4% to $1,223 per ounce. All-in-sustaining costs per ounce (AISC) increased 1% to $1,640 per ounce, mainly due to higher sustaining capital expenditure, which was partly offset by higher gold sold. AngloGold Ashanti, meanwhile, remains focused on its Full Asset Potential program to offset the inflationary impacts. The company's average real cash costs are up 1% over the first quarter 2021-first quarter 2025 timeframe compared to more than 20% for its peer group (Agnico-Eagle Mines, Barrick Mining, Gold Fields, Kinross and Newmont). Significant Debt Reduction and Strong Liquidity: AU's free cash flow increased almost seven-fold to $403 million in the first quarter, from $57 million in the year-ago quarter. It has managed to take down its adjusted net debt to $525 million, from the $1.322 billion at the year-ago quarter's end. The adjusted net debt to adjusted EBITDA ratio improved to 0.15X in the first quarter compared to 0.86X in the first quarter of 2024. AngloGold Ashanti ended the first quarter of 2025 with $3 billion in liquidity, including cash and cash equivalents of $1.5 billion. FY25 Guidance Affirmed: AngloGold Ashanti expects 2025 gold production between 2.9 and 3.225 million ounces. Total cash cost per ounce is forecast to range between $1,125 and $1,225 per ounce, and AISC at $1,580-$1,705 per ounce. Tailwinds From Rising Gold Prices: The metal has gained 23.5% year to date, riding on the escalating tariff tensions and geopolitical uncertainties. Gold is currently above $3,220 an ounce as lingering concerns over the U.S economic outlook and fiscal deficit continued to boost safe-haven demand. Gold prices are likely to continue to gain in this uncertain environment, with increased purchases by central banks, hopes of interest rate cuts and geopolitical tensions. This creates a favorable backdrop for AU. Strategic Growth Focus: AngloGold Ashanti is executing a clear strategy of organic and inorganic growth. In November 2024, it acquired Egyptian gold producer Centamin, adding the large-scale, long-life, world-class Tier 1 asset (Sukari) to its portfolio. It has the potential to produce 500,000 ounces annually. With this addition, the proportion of gold production from its Tier 1 assets has moved up from 62% to 67%. AU's mineral reserves went up to 31.2 million ounces at the end of 2024. It recently sold its interests in two gold projects in Côte d'Ivoire to Resolute Mining Limited to sharpen its focus on its operating assets and development projects in the United States. Obuasi remains a significant pillar of its long-term strategy. The company's focus this year is to continue the implementation of the underhand drift and fil UHDF mining method and make stoping improvements. This important orebody is expected to deliver around 400,000 ounces of annual production at competitive costs by 2028. At Siguiri, 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. Upward Estimate Trajectory Instill Confidence in AU Earnings The EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The Zacks Consensus Estimate for AU's 2025 sales stands at $8.58 billion, suggesting 48.2% year-over-year growth. The consensus mark for the year's earnings is at $3.48, indicating year-over-year growth of 57.4%. The Zacks Consensus Estimate for sales for 2026 suggests 14.3% year-over-year growth, and the same for earnings indicates growth of 16.4%. Image Source: Zacks Investment Research Image Source: Zacks Investment Research AU Offers Industry-Leading Dividend Yield Under its new dividend policy, AngloGold Ashanti aims to return 50% of its annual free cash flow, subject to maintaining an adjusted net debt to adjusted EBITDA ratio of 1.0 times. The dividend policy introduced an annual base dividend of 50 cents per share per year, payable in quarterly instalments of 12.50 cents per share. If required, a 'true-up' payment will be made in the final quarter of each year to ensure that the total dividends align with the 50% free cash flow payout target. This structure establishes a minimum return, offering stability to shareholders throughout commodity price cycles. AngloGold Ashanti's current 3.27% dividend yield is higher than the industry's 1.64%. In comparison, Newmont, Agnico Eagle Mines and Kinross Gold Corporation have a lower dividend yield of 1.96%, 1.48% and 0.86%, respectively. How Should Investors Play the AU Stock? AngloGold's strategic actions to boost production and financial health, combined with rising earnings estimates and an industry-leading dividend yield, present a compelling investment case. Surging gold prices should also boost its profitability and drive cash flow generation. Its disciplined cost management should help offset inflationary pressures. With an attractive valuation, strong price performance relative to peers, and solid growth prospects, AU stands out as a promising opportunity. Adding this Zacks Rank #1 (Strong Buy) stock will be prudent for investors. You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
