Bull of the Day: AngloGold Ashanti (AU)

Core Viewpoint - AngloGold Ashanti plc is benefiting from record gold prices, with significant earnings growth expected in 2024 and 2025, driven by tight cost controls and increased free cash flow [1][5][6]. Financial Performance - In Q3 2024, AngloGold Ashanti reported earnings of $0.56, missing the Zacks Consensus by $0.08, with an average gold price received of $2,449 per ounce, up 28% from $1,908 in Q3 2023 [3]. - The company experienced a 17-fold increase in free cash flow to $347 million, up from $20 million the previous year, with free cash flow per ounce at $540 [4]. Earnings Estimates - Analysts have raised full-year 2024 earnings estimates to a consensus of $2.81, reflecting a growth of 2,654% from a loss of $0.11 last year [5]. - For 2025, the earnings consensus has increased to $3.83, indicating further growth of 36.5% [6]. Market Performance - In 2025, AngloGold Ashanti's shares have increased by 24.1% year-to-date, significantly outperforming the Gold ETF, which has risen by only 5.3% [7]. - The company is trading at a forward P/E of 7.8, indicating it is undervalued, with a dividend yield of 1.5% [7]. Strategic Positioning - The acquisition of Centamin plc in November 2024 added the Sukari gold mine in Egypt and exploration interests in Egypt and Cote d'Ivoire, enhancing the company's operational footprint [2].