AU - AngloGold Ashanti: A High-Cost Senior Gold Producer Targeting Portfolio Optimization For Long-Term Growth

2024-02-15 10:40:04 ET

Summary

• Recent gold price correction is hurting the stock, especially due to its high-cost performance in relation to peer senior gold producers.
• AngloGold is targeting portfolio optimization to improve its operational profile over the medium-to-long term.
• The stock's attractive technical picture is not endorsed by its valuation in relation to peers.
• The stock is a hold.

Thesis

AngloGold Ashanti ( AU ) is a senior gold producer with a geographically diverse portfolio of mining assets. The company's recent primary listing on the NYSE did not help the share price much. The stock is currently trading near the lower end of its 52-week range, and the share price may drop further after the recent gold price correction (check the chart below).

In this analysis, we discuss the following areas to help us consider an investment thesis about the company:

1. AU's operational standing, including its production and cost performance during the most recent reported quarter....

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