AngloGold Ashanti plc AU is cashing in on record gold prices. This Zacks Rank #1 (Strong Buy) is expected to see earnings rise 36.5% in 2025 after a big year in 2024.
AngloGold Ashanti is a large cap gold mining company. Headquartered in Denver, it is registered in England and Wales. It has operations, projects, and explorations in 11 countries across 4 continents including Tanzania, the DRC, Ghana, Guinea, Egypt, Cote d'Ivoire, Australia, the United States, Brazil, Argentina, and Colombia.
In Nov 2024, it acquired Centamin plc which added the Sukari gold mine in Egypt and exploration interests in Egypt and the Cote d'Ivoire.
On Nov 7, 2024, AngloGold Ashanti reported its third quarter results and missed on the Zacks Consensus by $0.08. Earnings were $0.56 versus the consensus of $0.64.
But Zacks only has one estimate on the company for the quarterly results.
Average price of gold received was up 28% to $2449 from $1908 an ounce in the third quarter of 2023.
The company saw a 17-fold increase in free cash flow to $347 million, up from $20 million the prior year thanks to tight control of costs and active management of the working capital. With the higher price of gold, the cost cutting flowed through to the bottom line.
Free cash flow was $540/oz.
Analysts are bullish on this gold miner as gold prices continue to hit new highs. AngloGold Ashanti is expected to report full year 2024 results on Feb 19, 2025.
2 estimates are higher for 2024 in the last 30 days. That has pushed the Zacks Consensus up to $2.81 from $2.50 in that time. That's earnings growth of 2,654% as the company lost $0.11 last year.
Analysts are bullish on 2025 too. 2 estimates are higher in the last 30 days which has pushed the Zacks Consensus up to $3.83 from $2.75. That is further earnings growth of 36.5%.
Gold is on the move again in 2025 so this gold miner is moving higher as well. However, it is well outpacing the Gold ETF, adding 24.1% year-to-date compared to just 5.3% for the Gold ETF (GLD).
On a price-to-earnings (P/E) basis, AngloGold Ashanti is cheap. It trades with a forward P/E of just 7.8. A P/E under 15 usually indicates a company has value, but one under 10 means it is dirt cheap.
AngloGold Ashanti also pays a dividend, currently yielding 1.5%.
If you are looking for a gold miner with big earnings growth, and free cash flows, then AngloGold Ashanti should be on your short list.
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