AngloGold Ashanti Is Ascending

(14min)

Summary

  • AngloGold Ashanti's strategic reset under CEO Calderon has driven operational discipline, improved margins, and enhanced portfolio quality, justifying AU's current valuation.
  • The company's move to the NYSE and strong management execution have unlocked value, attracting more institutional investors.
  • Despite cyclical gold sector risks, AU's high-quality, low-cost assets and reaffirmed 2025 guidance position it for continued outperformance versus peers.
  • I set a $49 price target for AU, which targets 20% upside, with a conditional Buy rating as long as shares hold above the 50-day moving average.

Gold bullion leaning on a stack of gold ingots. Illustration of the concept of precious metal trade and wealth

Dragon Claws

AngloGold Ashanti (NYSE:AU) is one of the largest gold producers globally, and has a geographically diversified portfolio of high-quality assets. Two-thirds of AU's production comes from Tier 1 operations. In 2020, AngloGold Ashanti divested its

This article was written by

I work on the buy-side in Fixed Income. In my spare time, I'm out here Seeking Alpha. When it comes to my investment outlook—I'm here to remind you to "Always Protect Your Nuts!" I have a special interest in the Mining and Real Estate sectors.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AU over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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