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Anglogold Ashanti PLC (AU)
NYSE:AU
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Anglogold Ashanti PLC
(NYSE:AU)78Outperform
Positive Factors
Dividend Announcement
AngloGold announced an interim dividend of US$0.22 per share for H1/24, enhancing shareholder returns.
Free Cash Flow
AngloGold generated US$206M in free cash flow in H1/24, marking a significant improvement over the previous year's negative US$203M.
Valuation
AngloGold currently trades at a slight discount to peers, presenting a potential value opportunity for investors.
Negative Factors
Production Guidance
AngloGold management anticipates a backend-loaded production profile, which may pose risks if targets are not met as expected.
Anglogold Ashanti PLC (AU) vs. S&P 500 (SPY)
Market Cap
$15.30B
Dividend Yield0.74%
Average Volume (3M)2.42M
Price to Earnings (P/E)13.0
Beta (1Y)0.99
Revenue Growth9.18%
EPS GrowthN/A
CountryUS
Employees33,658
SectorBasic Materials
Sector Strength56
IndustryMining
Share Statistics
EPS (TTM)0.08
Shares Outstanding503,514,900
10 Day Avg. Volume2,791,166
30 Day Avg. Volume2,419,554
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.71
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.50Price Target Upside10.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Anglogold Ashanti PLC Business Overview & Revenue Model
Company DescriptionAnglogold Ashanti Ltd is one of the largest gold miners. The company also produces silver and sulphuric acid as by-products. Its operating divisions are Africa, Australia, and the Americas. The firm generates a majority of its revenue from Africa which includes Ghana, Guinea, Mali, the Democratic Republic of the Congo, and Tanzania.
How the Company Makes MoneyAnglogold Ashanti PLC makes money primarily through the extraction and sale of gold, which is its main revenue stream. The company operates a number of mines around the world, including in Africa, Australia, and the Americas, where it extracts gold ore. The extracted ore is processed to produce gold bullion, which is then sold on the global market. In addition to gold, the company generates additional revenue from the sale of by-products such as silver and uranium, which are extracted alongside gold. Anglogold Ashanti's revenue is also influenced by gold market prices, production volumes, and operational efficiency. Strategic partnerships and joint ventures in various regions also contribute to its financial performance by enabling cost-sharing and risk mitigation.
Anglogold Ashanti PLC Financial Statement Overview
Summary
Anglogold Ashanti PLC exhibits strong financial performance with solid revenue growth, improved profitability, and robust cash flow generation. The balance sheet indicates financial stability with a manageable debt-to-equity ratio and enhanced return on equity.Income Statement
Anglogold Ashanti PLC has demonstrated robust financial performance with strong revenue growth and improved profitability. The gross profit margin increased significantly, and the net profit margin turned positive, showcasing enhanced cost management and operational efficiency. The EBIT and EBITDA margins also reflect healthy profitability.85
Very Positive
Balance Sheet
The balance sheet shows a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is manageable, reflecting a balanced approach to leverage. The return on equity (ROE) has significantly improved, pointing towards effective utilization of equity to generate profits.75
Positive
Cash Flow
The company has shown remarkable improvement in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio underscores efficient cash conversion from earnings. The free cash flow to net income ratio suggests that the company is effectively converting net income into free cash flow.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.79B | 4.58B | 4.50B | 4.03B | 4.59B | Gross Profit |
| 2.07B | 1.04B | 1.14B | 1.17B | 1.77B | EBIT |
| 1.70B | 697.00M | 809.00M | 811.00M | 1.48B | EBITDA |
| 2.29B | 1.17B | 1.36B | 1.30B | 2.01B | Net Income Common Stockholders |
| 1.00B | -235.00M | 233.00M | 614.00M | 1.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.43B | 964.00M | 1.11B | 1.15B | 1.33B | Total Assets |
| 12.96B | 8.18B | 8.01B | 8.01B | 7.71B | Total Debt |
| 2.15B | 2.42B | 2.10B | 2.03B | 2.05B | Net Debt |
| 728.00M | 1.46B | 992.00M | 879.00M | 717.00M | Total Liabilities |
| 4.64B | 4.43B | 3.94B | 3.91B | 3.93B | Stockholders Equity |
| 6.63B | 3.71B | 4.04B | 4.05B | 3.73B |
| Cash Flow | Free Cash Flow | |||
| 878.00M | -71.00M | 257.00M | 227.00M | 936.00M | Operating Cash Flow |
| 1.97B | 971.00M | 1.80B | 1.27B | 1.69B | Investing Cash Flow |
| -762.00M | -897.00M | -1.46B | -940.00M | -514.00M | Financing Cash Flow |
| -727.00M | -87.00M | -323.00M | -456.00M | -329.00M |
Anglogold Ashanti PLC Technical Analysis
Positive
31.29
Price Trends
28.20
Positive
27.39
Positive
27.20
Positive
Market Momentum
0.33
Positive
50.70
Neutral
29.22
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 31.29 is below the 20-day moving average (MA) of 31.53, above the 50-day MA of 28.20, and above the 200-day MA of 27.20, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 29.22 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 9 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 (47)
Financial Indicators
Performance Comparison
AU
Anglogold Ashanti PLC
31.29
9.66
44.66%
AEM
Agnico Eagle
99.55
46.94
89.22%
GOLD
Barrick Gold
18.46
3.09
20.10%
HMY
Harmony Gold Mining
10.84
3.86
55.30%
KGC
Kinross Gold
11.44
6.18
117.49%
NEM
Newmont Mining
43.85
10.99
33.44%
Anglogold Ashanti PLC Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -2.80% | Next Earnings Date: Aug 12, 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.Highlights
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.
Lowlights
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.