Last Updated: 14 Sep 2024
Executive Summary
AngloGold Ashanti plc (AU) is a gold mining company with a market capitalization of $11.75 billion. The company has been facing challenges in recent years due to declining gold prices and rising costs. However, the company's recent financial results have shown signs of improvement. In the latest quarter, AngloGold Ashanti reported revenue of $4.95 billion, up 0.1% year-over-year. The company also reported earnings per share of $0.27, down 0.6% year-over-year. Despite the decline in earnings, the company's profit margin and operating margin have improved in recent quarters.
Company Overview
AngloGold Ashanti is a gold mining company with operations in Africa, South America, and Australia. The company is the world's third-largest gold producer, with a production of 3.1 million ounces of gold in 2023. AngloGold Ashanti has a diverse portfolio of mines, with operations in both open-pit and underground mines. The company also has a number of exploration projects in progress.
Fundamental Analysis
AngloGold Ashanti's financial performance has been mixed in recent years. The company's revenue has declined in recent years due to declining gold prices. However, the company's costs have also declined, and the company has been able to maintain its profitability. In the latest quarter, AngloGold Ashanti reported an operating margin of 19.9%, up from 18.2% in the same quarter last year.
AngloGold Ashanti's balance sheet is strong. The company has a low level of debt and a high level of liquidity. The company's cash and cash equivalents totaled $1.9 billion at the end of the latest quarter.
Technical Analysis
AngloGold Ashanti's stock price has been in a downtrend in recent years. The stock price has fallen from a high of $32.34 in 2023 to a low of $14.68 in 2024. The stock price is currently trading at $28.61, which is below its 50-day and 200-day moving averages.
The technical indicators are bearish for AngloGold Ashanti. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for AngloGold Ashanti is bearish. The stock price is in a downtrend and the technical indicators are bearish. The stock price is likely to continue to decline in the short term.
Long Term Outlook
The long-term outlook for AngloGold Ashanti is more positive. The company has a strong balance sheet and a diverse portfolio of mines. The company is also well-positioned to benefit from a recovery in gold prices. The stock price is likely to recover in the long term.
Analyst Recommendations
The analyst consensus rating for AngloGold Ashanti is "hold." The average analyst target price is $30.00.
