Will AU's approach to exploration help boost its gold reserves?

AngloGold Ashanti Advances Exploration for Sustainable Growth

AngloGold Ashanti PLC (AU) continues to prioritize exploration as a key driver for long-term value, delivering impressive results throughout its asset portfolio. These efforts have not only offset resource depletion but also enhanced the reliability of its reserves.

Over the last five years, the company has successfully increased its gold mineral reserves by 23.1 million ounces, factoring in acquisitions and before depletion. By December 31, 2025, AngloGold Ashanti’s gold mineral reserves reached 36.5 million ounces, marking the ninth year in a row of reserve growth.

This achievement was supported by the addition of an initial 4.9 million ounces at the Merlin project and a notable pre-depletion gain of 1.3 million ounces at the Geita mine. As of the end of 2025, AU reported measured and indicated gold resources totaling 68.0 million ounces, with inferred resources at 49.3 million ounces.

Looking ahead, the company intends to allocate targeted investments over the next three years to further exploration and reserve development, with a particular focus on converting resources into reserves at sites with strong geological promise.

In line with this strategy, AngloGold Ashanti has earmarked $100 million for expanding the Geita gold mine in Tanzania over the next three years. This initiative aims to boost Geita’s reserves by 60%, potentially extending the mine’s operational life from seven years to at least ten by 2028.

Comparison of Mineral Reserves Among Industry Leaders

Newmont Corporation (NEM) reported gold mineral reserves of 118.2 million ounces at the close of 2025, down from 134.1 million ounces in 2024, primarily due to asset sales during the year. Despite this reduction, Newmont maintains the largest gold reserve base in the sector.

Agnico Eagle Mines Limited (AEM) ended 2025 with gold mineral reserves of 55.4 million ounces, reflecting a 2.1% increase from the previous year. This growth was driven by successful reserve replacement at operating sites and the initial reserve declaration at the Marban deposit in Malartic. For 2026, Agnico Eagle Mines anticipates spending between $565 million and $635 million on exploration and project development.

AngloGold Ashanti’s Stock Performance and Financial Outlook

Over the past year, AngloGold Ashanti’s share price has soared by 273.4%, significantly outpacing the Zacks Mining – Gold industry’s 143.6% rise. In comparison, the Basic Materials sector advanced 47.5%, while the S&P 500 gained 24.6%.

Currently, AU trades at a forward 12-month price-to-earnings ratio of 11.79, which is below the industry average of 12.90.

The Zacks Consensus projects AngloGold Ashanti’s 2026 revenue at $11.98 billion, representing a 23.1% increase year over year. Earnings per share for 2026 are estimated at $9.27, indicating a 72.6% annual growth.

For 2027, consensus estimates suggest a 14.3% decline in sales and a 1.8% decrease in earnings per share.

Over the last 60 days, EPS estimates for 2026 have increased by 18.7%, while projections for 2027 have dropped by 9.5%.

AngloGold Ashanti currently holds a Zacks Rank #3 (Hold).

The Next Phase of AI Investment

The artificial intelligence sector has already created significant wealth, but the most well-known companies may not offer the highest returns going forward. Emerging AI firms addressing major global challenges could present more attractive opportunities in the near future.