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AngloGold Ashanti Limited (NYSE: AU), a leading gold mining company with a market capitalization of $19 billion, has reached a new 52-week high, with its stock price soaring to $38.68. According to InvestingPro data, the company maintains a GREAT financial health score, supported by strong liquidity with a current ratio of 2.18. This milestone reflects a significant uptrend in the company's market performance, marking a substantial increase from its previous levels over the past year. Investors have shown increased confidence in AngloGold Ashanti, as evidenced by the remarkable year-to-date return of 61.23% and impressive revenue growth of 26.43%. This bullish trend underscores the market's positive reception to the company's strategic initiatives and its resilience amidst fluctuating gold prices. InvestingPro subscribers have access to 12 additional tips and comprehensive metrics to better evaluate this gold mining giant's potential.
In other recent news, AngloGold Ashanti reported fourth-quarter earnings per share of $0.89, which fell short of the analyst consensus estimate of $0.99. The company's revenue for the quarter was $1.72 billion, below the expected $1.75 billion. Despite this earnings miss, AngloGold Ashanti achieved significant year-over-year gains, with free cash flow rising to $942 million and adjusted EBITDA increasing by 93% to $2.75 billion. The company also announced a new dividend policy, targeting a 50% payout of free cash flow, with a base dividend of $0.50 per share annually.
Separately, BMO Capital Markets maintained its Outperform rating for AngloGold Ashanti, with a price target of $40.00. Analyst Raj Ray expressed confidence in the company's operations following site visits to key mines in Ghana and Egypt. The Obuasi mine in Ghana has completed an extensive refurbishment program, while the Sukari mine in Egypt is a newly acquired asset in steady-state production. BMO anticipates these assets will contribute positively to AngloGold Ashanti's growth.
Additionally, Goldman Sachs raised its gold price forecast, citing stronger-than-expected ETF inflows and sustained central bank demand. This bullish outlook contributed to a rise in gold mining stocks, including AngloGold Ashanti, as investors reacted to the revised forecast. Goldman Sachs emphasized the potential for continued robust demand for gold, which could benefit gold mining companies in the future.
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