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Anglogold Ashanti PLC (AU)
NYSE:AU
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Anglogold Ashanti PLC
(NYSE:AU)
Rating:75Outperform
Price Target:
$52.00
▲(13.54%Upside)
Positive Factors
Dividend Policy
The new dividend policy should be attractive to investors as it provides further leverage to the gold price.
Growth Strategy
AU's management has a strong plan for growth both through M&A and organic development.
Valuation
AngloGold currently trades at a slight discount to peers, indicating potential for value increase.
Negative Factors
Asset Quality
The acquisition of Sukari fits within the company's “Tier 1” asset definition while the asset sales reflect “Tier 2” or lower assets that don't meet management's investment criteria.
Anglogold Ashanti PLC (AU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.06B
Dividend Yield0.55%
Average Volume (3M)4.09M
Price to Earnings (P/E)19.6
Beta (1Y)0.65
Revenue Growth26.43%
EPS GrowthN/A
CountryUS
Employees12,634
SectorBasic Materials
Sector Strength69
IndustryGold
Share Statistics
EPS (TTM)0.88
Shares Outstanding503,527,040
10 Day Avg. Volume6,660,392
30 Day Avg. Volume4,092,064
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)2.04
Price to Sales (P/S)0.00
P/FCF Ratio32.01
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda0.90
Forecast
1Y Price Target
$48.70Price Target Upside6.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Anglogold Ashanti PLC Business Overview & Revenue Model
Company DescriptionAnglogold Ashanti PLC (AU) is a global gold mining company with a diverse portfolio of operations and projects across four continents. The company is headquartered in Johannesburg, South Africa, and is one of the largest gold mining companies in the world. AngloGold Ashanti primarily engages in the exploration, mining, and marketing of gold, but it also produces by-products such as silver and sulfuric acid. The company operates numerous mines and has a strong focus on sustainable mining practices and community engagement.
How the Company Makes MoneyAngloGold Ashanti makes money through the exploration, mining, and sale of gold and by-products. The company's primary revenue stream is the sale of gold, which is priced and sold on global markets. Additional revenue is generated from the sale of by-products like silver and sulfuric acid, which are extracted during the gold mining process. AngloGold Ashanti's income is influenced by the price of gold, which fluctuates based on global economic conditions, supply and demand dynamics, and geopolitical factors. The company also enters into partnerships and joint ventures to optimize operations and share resources and risks. Efficient cost management, technological innovation, and strategic geographical diversification contribute significantly to maximizing profitability and sustaining long-term growth.
Anglogold Ashanti PLC Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q3-2024)
| % Change Since: 9.70%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful strategic acquisitions, and effective cost management. However, challenges at specific sites and increased group costs due to macroeconomic factors were noted as concerns.Q3-2024 Updates
Positive Updates
Strong Free Cash Flow Generation
The company generated $347 million in free cash flow in Q3 2024 compared to $20 million in Q3 2023, marking a significant increase and the highest in the company's history at $528 an ounce.
Record Gold Prices
Gold prices reached a new high of $2,685 an ounce in September 2024, contributing to a strong quarterly gain of 13% and a year-to-date gain of 28%.
Successful Centamin Acquisition
The acquisition of Centamin's assets, including the Siguiri mine, was overwhelmingly approved by shareholders, expected to be accretive immediately and add significant production potential.
Cost Management Success
Costs from managed operations were up only 2% year-on-year, well below the 6% inflation rate, demonstrating strong cost control.
Improved Balance Sheet
Adjusted net debt decreased by almost a third to $906 million, with a leverage ratio of 0.37 times, indicating a strong financial position.
Production and Cost Improvements
Australia and Brazil showed strong quarterly performance, with Australia recovering from earlier flooding and Brazil's Cuiabá improving cost efficiency and production.
Negative Updates
Challenges at Obuasi
Obuasi faced persistent ground condition challenges, leading to overbreak, dilution, and significant rework, affecting production volumes.
Kibali Production Struggles
Kibali experienced a soft quarter with lower production due to grade struggles, impacting overall performance.
Higher Group Costs
Total cash costs for the group, including non-managed operations, rose by 8% year-on-year to $1,172 per ounce, reflecting increased macroeconomic pressures.
Hedging Losses
The company experienced a realized loss of $25 million in Q3 2024 due to zero cost collar positions against the high costs and uncertainty in Brazil.
Company Guidance
During AngloGold Ashanti's Q3 2024 earnings call, the company maintained its guidance across all metrics, highlighting a strong financial performance amid industry challenges. Notably, the company reported a 339% year-on-year increase in adjusted EBITDA to $746 million, and a significant rise in free cash flow to $347 million, equating to $528 per ounce, the highest in its history. Despite a 6% realized inflation rate, cost management strategies kept managed operations costs up by only 2% year-on-year. The acquisition of Centamin's Siguiri North Africa gold mine is expected to enhance production and cost profiles, contributing annual production of around 0.5 million ounces at an all-in sustaining cost below $1,200 per ounce. The company's balance sheet remains robust with $2.6 billion in liquidity and adjusted net debt reduced by nearly a third to $906 million, maintaining leverage at 0.37 times adjusted EBITDA.Anglogold Ashanti PLC Financial Statement Overview
Summary
Anglogold Ashanti PLC exhibits strong financial health with impressive revenue growth and profitability improvements. The balance sheet is well-managed with moderate leverage and solid equity support, while cash flow generation is robust, enabling strategic investments and debt management. The company is well-positioned for future growth, though it must remain vigilant of market volatilities and maintain financial discipline.Income Statement
Anglogold Ashanti PLC demonstrated strong revenue growth with a 33.90% increase over the TTM. The gross profit margin stood at 35.78%, reflecting efficient production costs. Net profit margin improved significantly to 17.90% in the TTM from a negative margin in 2023, indicating enhanced profitability. EBIT and EBITDA margins at 29.67% and 39.40%, respectively, showcase robust operational performance. Overall, the company shows solid profit generation and cost management.78
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.33, indicating a healthy leverage position. Return on equity improved to 20.50% in the TTM, highlighting effective utilization of shareholder funds. The equity ratio of 50.58% suggests a stable financial structure with substantial equity backing. However, maintaining this balance will be crucial amid potential market fluctuations.73
Positive
Cash Flow
The company reported a 47.69% growth in free cash flow, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 1.94 underscores efficient cash conversion from profits. A free cash flow to net income ratio of 0.93 indicates robust cash flow management, supporting ongoing investments and debt servicing while providing flexibility.81
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.76B | 5.79B | 4.58B | 4.50B | 4.03B | 4.59B |
| Gross Profit | 2.77B | 2.07B | 1.04B | 1.14B | 1.17B | 1.77B |
| EBITDA | 3.06B | 2.29B | 1.17B | 1.36B | 1.30B | 2.01B |
| Net Income | 1.39B | 1.00B | -235.00M | 233.00M | 614.00M | 1.01B |
Balance Sheet | ||||||
| Total Assets | 13.39B | 12.96B | 8.18B | 8.01B | 8.01B | 7.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.49B | 1.43B | 964.00M | 1.11B | 1.15B | 1.33B |
| Total Debt | 2.25B | 2.15B | 2.42B | 2.10B | 2.03B | 2.05B |
| Total Liabilities | 4.71B | 4.64B | 4.43B | 3.94B | 3.91B | 3.93B |
| Stockholders Equity | 6.77B | 6.63B | 3.71B | 4.04B | 4.05B | 3.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.30B | 878.00M | -71.00M | 257.00M | 227.00M | 936.00M |
| Operating Cash Flow | 2.69B | 1.97B | 971.00M | 1.80B | 1.27B | 1.69B |
| Investing Cash Flow | -1.03B | -762.00M | -897.00M | -1.46B | -940.00M | -514.00M |
| Financing Cash Flow | -1.04B | -727.00M | -87.00M | -323.00M | -456.00M | -329.00M |
Anglogold Ashanti PLC Technical Analysis
Positive
45.80
Price Trends
44.16
Positive
39.17
Positive
32.62
Positive
Market Momentum
0.51
Positive
53.03
Neutral
43.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU, the sentiment is Positive. The current price of 45.8 is below the 20-day moving average (MA) of 46.99, above the 50-day MA of 44.16, and above the 200-day MA of 32.62, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU.
Anglogold Ashanti PLC Risk Analysis
Anglogold Ashanti PLC disclosed 1 risk factors in its most recent earnings report. Anglogold Ashanti PLC reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Anglogold Ashanti PLC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $65.48B | 13.21 | 16.64% | 1.70% | 48.69% | ― | |
78 Outperform | $11.69B | 29.33 | 13.03% | 1.01% | 18.77% | 38.55% | |
75 Outperform | $23.06B | 19.62 | 19.42% | 0.55% | 26.43% | ― | |
75 Outperform | $21.40B | 17.06 | 25.35% | 3.16% | 13.41% | 73.34% | |
74 Outperform | $8.91B | 14.96 | 25.19% | 1.72% | 20.35% | 20.44% | |
70 Outperform | $1.18B | 12.32 | 24.89% | 1.22% | 22.63% | 28.96% | |
43 Neutral | AU$1.37B | -6.17 | -40.62% | 4.19% | -4.78% | -42.91% |
* Basic Materials Sector Average
Performance Comparison
AU
Anglogold Ashanti PLC
46.66
21.40
84.72%
DRD
Drdgold
13.65
4.80
54.24%
GFI
Gold Fields
24.09
9.17
61.46%
HMY
Harmony Gold Mining
14.26
5.00
54.00%
NEM
Newmont Mining
60.06
17.53
41.22%
RGLD
Royal Gold
179.30
51.42
40.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.