AngloGold Ashanti (NYSE:AU) capped FY 2025 with fourth quarter revenue of US$3.1b and Basic EPS of US$1.68, rounding out a trailing twelve month run of US$9.9b in revenue and Basic EPS of US$5.19. Over the past six reported quarters, revenue has moved from US$1.5b in Q3 2024 to US$3.1b in Q4 2025, while quarterly Basic EPS stepped from US$0.53 to US$1.68 as net income excluding extra items shifted from US$223m to US$855m. With trailing net profit margins sitting at 26.6% compared with 17.3% a year earlier, this earnings release places pricing, cost control, and overall profitability squarely in focus for investors.

See our full analysis for AngloGold Ashanti.

With the headline numbers on the table, the next step is to compare this earnings profile with the dominant stories around growth, risk, and quality that investors have been using to frame AngloGold Ashanti.

Margins Stretch To 26.6% On US$9.9b LTM Revenue

• Over the last twelve months, AngloGold Ashanti generated US$9.9b in revenue and US$2.6b in net income, which works out to a 26.6% net margin compared with 17.3% a year earlier.
• What really backs the bullish view on margin strength is that this higher 26.6% margin sits alongside 162.5% earnings growth over the year and a history of roughly 23.1% yearly earnings growth, while bullish investors argue that efficiency gains and relatively stable cash costs could support even higher margins if strong gold pricing continues.
• Supporters of the bullish narrative point to the trailing twelve month revenue growth figure of 14% per year and the margin step up from 17.3% to 26.6% as evidence that the company is converting higher prices into profit rather than just higher costs.
• At the same time, the bullish case for an "earnings super cycle" tied to structurally higher gold prices runs into the simple fact that current margins and earnings are already elevated, so anyone following that view needs to decide how much of the 26.6% margin is repeatable versus tied to recent pricing conditions.

AngloGold Ashanti’s recent margin profile gives plenty of fuel to the optimists, so if you want to see how bullish analysts connect these results to their long term story, 🐂 AngloGold Ashanti Bull Case.

Valuation Signals: 19.2x P/E And DCF Gap

• The stock is trading on a trailing P/E of 19.2x, slightly below the US Metals & Mining industry at 19.4x and peers at 21.6x, while a DCF fair value of US$166.99 sits well above the current share price of US$100.23.
• Bears argue that even with a trailing P/E a bit under sector averages and a DCF fair value well above the current price, the key risk is that current earnings and margins prove hard to sustain once regulatory costs and asset quality pressures bite.
• Critics highlight that earnings growth of 162.5% over the last year and a 26.6% net margin are being used to justify a DCF fair value of US$166.99, so if margins move closer to the prior 17.3% level over time, the current 19.2x P/E could start to look less comfortable.
• The bearish narrative also flags rising compliance and ESG related costs as a headwind, and with revenue growth running at 14% per year, any cost creep that eats into the 26.6% margin would matter more for valuation than today’s small discount to industry and peer P/E levels suggests.

If you are weighing those valuation doubts against the recent share price and profit numbers, it helps to see how skeptics build their case in detail, 🐻 AngloGold Ashanti Bear Case.

Analysts See 23.4% Earnings Growth Versus US$120.57 Target

• Forecasts built off the trailing twelve month base point to roughly 23.4% yearly earnings growth and 14% yearly revenue growth, while analysts as a group cite a price target of about US$120.57 compared with today’s US$100.23 share price.
• Consensus expectations sit between the bullish and bearish camps, treating the 26.6% net margin and strong trailing performance as a base but assuming future valuation multiples ease even if earnings keep growing.
• The consensus narrative notes that revenue growth of 14% per year and high earnings quality support a case for continued expansion, but the implied upside from US$100.23 to roughly US$120.57 is much smaller than the gap to the US$166.99 DCF fair value that some investors focus on.
• At the same time, the unstable dividend record and reliance on robust gold prices are built into those consensus numbers, which is why the analyst target implies a more modest rerating than the very optimistic scenarios, even though the starting point is strong earnings growth and a 26.6% margin.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for AngloGold Ashanti on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, it is worth checking whether this mix of optimism and concern fits your own tolerance and timeline. Take a closer look at the 4 key rewards and 2 important warning signs

See What Else Is Out There

AngloGold Ashanti’s strong recent earnings sit alongside questions about how stable margins, regulatory costs, asset quality, and an unstable dividend record might affect future returns.

If those uncertainties around earnings durability and dividends give you pause, compare this profile with companies screened as potential income anchors using the 12 dividend fortresses.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.