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    AngloGold Ashanti (AU) Is Up 22.8% After Surging Earnings, Dividend Hike and Index Addition – Has The Bull Case Changed?

    Simply Wall St·08/07/2025 11:53:31
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    • On August 1, 2025, AngloGold Ashanti reported very large earnings growth for the first half of the year, along with a 21% rise in gold production and announced an interim dividend of 80 US cents per share.
    • The company was also added to major US indexes, reflecting increased visibility among institutional investors and confidence in its strong cash flow position.
    • We’ll explore how AngloGold Ashanti’s higher gold production and significant earnings increase may impact its investment narrative.

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    AngloGold Ashanti Investment Narrative Recap

    To own AngloGold Ashanti, you have to believe in the company’s ability to capitalize on higher gold prices and drive production increases, while carefully managing operational and geopolitical risks. The latest results, with a 21% rise in gold output and a sharp increase in net income, have shifted the spotlight to the company’s ability to sustain margin growth; however, cost control and climate impacts remain important watchpoints in the short term, with no indication of material change to the outlook yet.

    One announcement that stands out is the reaffirmation of the company’s full-year production and cost management guidance on August 1, 2025. This is especially relevant after the latest production jump, as it provides investors with some continuity regarding AngloGold Ashanti’s ability to keep operational costs aligned with its expanded output, a key factor in supporting the company’s investment story and near-term catalysts.

    By contrast, investors should be aware that while earnings and production are up, persistent cost pressures remain a...

    Read the full narrative on AngloGold Ashanti (it's free!)

    AngloGold Ashanti's outlook anticipates $9.6 billion in revenue and $3.0 billion in earnings by 2028. This implies a 7.8% annual revenue growth rate and a $1.2 billion increase in earnings from the current $1.8 billion.

    Uncover how AngloGold Ashanti's forecasts yield a $53.83 fair value, a 8% downside to its current price.

    Exploring Other Perspectives

    AU Community Fair Values as at Aug 2025
    AU Community Fair Values as at Aug 2025

    Simply Wall St Community members supplied 11 fair value estimates for AngloGold Ashanti, ranging from US$17.84 to US$69.27 per share. With cost control remaining a central challenge, consider how these varied outlooks reflect differing views on the company’s ability to manage profitability going forward.

    Explore 11 other fair value estimates on AngloGold Ashanti - why the stock might be worth as much as 19% more than the current price!

    Build Your Own AngloGold Ashanti Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.