Anglogold Ashanti PLC's Meteoric Rise: Unpacking the 42% Surge in Just 3 Months

Anglogold Ashanti PLC (AU, Financial), a prominent player in the metals and mining industry, has experienced a notable stock performance in recent times. With a market capitalization of $10.25 billion, the company's stock price stands at $24.42. Over the past week, the stock has seen a slight decline of 0.77%. However, looking at a broader timeframe, Anglogold Ashanti PLC has witnessed a substantial gain of 42.42% over the past three months. This impressive surge has brought the stock from a state of being modestly undervalued, with a past GF Value of $22.59, to its current status of being fairly valued, with a GF Value of $22.8. This valuation indicates that the stock is trading at a price close to its intrinsic value, as defined by GuruFocus.com.

Anglogold Ashanti PLC is one of the world's leading gold miners, with operations spanning across Africa, Australia, and the Americas. The company's business extends beyond gold mining to include the production of silver and sulphuric acid. A significant portion of its revenue is generated from the African region, which is home to several of its key mines. 1780599912837312512.png

Profitability Insights

When it comes to profitability, Anglogold Ashanti PLC holds a Profitability Rank of 6/10. The company's Operating Margin is 13.68%, which is better than 77.25% of its peers in the industry. Additionally, the company's Return on Equity (ROE) is 0.94%, surpassing 80.25% of companies, while its Return on Assets (ROA) at 0.48% outperforms 81.66% of companies. The Return on Invested Capital (ROIC) stands at 2.94%, which is higher than 85.77% of companies in the sector. Over the past decade, Anglogold Ashanti PLC has maintained profitability for five years, ranking better than 68.64% of companies. 1780599931720069120.png

Growth Trajectory

The Growth Rank for Anglogold Ashanti PLC is 6/10. The company's 3-Year Revenue Growth Rate per Share is 8.50%, which is commendable when compared to 44.76% of companies. Its 5-Year Revenue Growth Rate per Share is 6.50%, again outperforming 46.39% of companies. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 3.32%, which is better than 48.99% of companies. The 3-Year EPS without NRI Growth Rate is 12.30%, and the 5-Year EPS without NRI Growth Rate is an impressive 74.00%, which is higher than 99.28% of companies. These growth metrics reflect a strong and consistent upward trajectory for Anglogold Ashanti PLC. 1780599950909009920.png

Notable Shareholders

Anglogold Ashanti PLC has attracted the attention of several prominent investors. First Eagle Investment (Trades, Portfolio) holds 6,003,149 shares, representing a 1.43% share percentage. Howard Marks (Trades, Portfolio) owns 5,874,951 shares, accounting for 1.4% of the company's shares. John Paulson (Trades, Portfolio), another notable investor, holds 3,833,492 shares, which equates to a 0.91% share percentage. The confidence of these seasoned investors further solidifies the company's market position.

Competitive Landscape

In comparison to its competitors, Anglogold Ashanti PLC holds a strong market position. Royal Gold Inc (RGLD, Financial) has a market cap of $8.09 billion, Coeur Mining Inc (CDE, Financial) is valued at $1.81 billion, and Seabridge Gold Inc (SA, Financial) stands at $1.35 billion. Anglogold Ashanti's larger market cap suggests a more dominant presence in the industry and potentially greater resources for expansion and growth.

Conclusion

Anglogold Ashanti PLC's recent stock performance, profitability, and growth metrics paint a picture of a robust company with a solid market position. The company's fair valuation, according to the GF Value, and the confidence shown by major investors, suggest a stable outlook. While the stock has seen a slight dip over the past week, its significant gain over the past three months and strong fundamentals indicate potential for continued success. Investors would do well to keep an eye on Anglogold Ashanti PLC as it navigates the dynamic metals and mining industry.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.