Goldman Sachs Picks Top African Gold Miners on Growth, Cash Flow Outlook Investing.com Fri, October 16, 2026 at 10:38 AM EDT 3 min read GS +0.52% GC=F +0.61% EDV.TO +0.55% AU +1.12% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Goldman Sachs initiated coverage on two African gold mining companies with Buy ratings, highlighting their organic growth potential and strong cash flow generation as key investment drivers in the sector.
Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list »
The investment bank sees compelling value in both miners despite jurisdiction-related discounts that have weighed on their valuations. Goldman analysts pointed to improving operational consistency, capital-efficient growth projects, and significant shareholder return potential as reasons to favor these stocks.
Goldman Sachs initiated coverage on Endeavour Mining with a Buy rating and 12-month price targets of GBP47 per share (EDV.L) and CAD90 per share (EDV.CN), based on 1x net asset value and 4.5x 2027 estimated enterprise value to EBITDA. The bank believes Endeavour offers a compelling combination of growth, free cash flow, and capital returns.
The company is targeting approximately 1.5 million ounces of annual production by 2030, up from 1.1 million ounces currently. Goldman estimates production could reach closer to 1.6 million ounces through projects including Assafou, Sabodala-Massawa, and Hounde.
The Assafou project alone is expected to add 320,000 ounces per year, delivering a net present value of approximately $4.5 billion and an internal rate of return exceeding 45%. Goldman projects production can grow at a compound annual growth rate of approximately 9% through 2030 while all-in sustaining costs fall by roughly 3%, or $50 per ounce, in nominal terms.
Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks »
The bank estimates shareholder distributions of approximately $1.8 billion over the next three years and expects Endeavour to maintain a net cash position, delivering free cash flow yields exceeding 10% over the medium term. Despite a 13% 2027 estimated free cash flow yield and net cash balance sheet, Endeavour trades at approximately 4x 2027 EBITDA and 0.85x price to net asset value.
Goldman Sachs initiated coverage on AngloGold Ashanti with a Buy rating and 12-month price targets of $104 per share (AU) and ZAR 1,720 per share (ANGJ.J), based on 1x net asset value and 6x 2027 enterprise value to EBITDA.
The bank highlighted the company's operational consistency and capital returns as key strengths. AngloGold has identified potential to add 300,000 to 450,000 ounces per year by 2030 through brownfield opportunities across Obuasi, Geita, Sukari, Mineracao, and Siguiri, representing 10% to 15% growth from the 2025 production base.
Goldman forecasts total distributions of approximately $8.5 billion over fiscal years 2027 through 2029, including approximately $5.6 billion through the base dividend framework, $1.2 billion of additional dividends, and $1.8 billion of buybacks.
This implies dividend yields of 4% to 5% while continuing to fund brownfield growth. AngloGold trades at approximately 5.5x 2027 estimated EBITDA and 0.85x net asset value on Goldman's estimates.
Goldman Sachs Picks Top African Gold Miners on Growth, Cash Flow Outlook
Nasdaq falls as AI trade extends declines, S&P 500 seesaws while Dow rises
Steelmaker Celsa weighs sale or initial public offering, Bloomberg reports
