Does AngloGold Ashanti (AU)'s Perfect Technical Score Reframe Its Risk Profile in Gold Mining?

Anglogold Ashanti PLC +6.15%

Anglogold Ashanti PLC

AU

114.25

+6.15%

  • In recent days, AngloGold Ashanti has been highlighted by technical analysts for a perfect Technical Rating of 10 and strong setup quality, while benefitting from a broader rally in gold miners supported by robust cash flows and comparatively high dividend yields.
  • This combination of constructive chart patterns and sector-wide strength in cash generation and payouts is drawing fresh attention to AngloGold Ashanti within the gold mining space.
  • Next, we’ll examine how this constructive technical setup and sector rally may influence AngloGold Ashanti’s existing investment narrative and risk profile.

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AngloGold Ashanti Investment Narrative Recap

To own AngloGold Ashanti, you need to believe in resilient demand for gold and the company’s ability to convert that into strong, recurring cash flows. The recent spotlight on a perfect technical rating and strong setup quality reinforces the short term catalyst of continued investor interest in gold miners but does not materially change the key risk that rising costs and higher gold price linked royalties could still compress margins if inflationary and regulatory pressures persist.

The company’s recent dividend announcements, including the interim dividend of US$0.91 per share for Q3 2025 and the new base dividend framework of US$0.50 per share per year with a free cash flow based top up, are especially relevant in light of the technical breakout narrative, as they underline how current cash generation is being shared with shareholders while the market reaction focuses on price momentum and sector strength.

Yet, behind the strong chart and high dividends, investors should be aware of the rising cost and royalty pressures that could...

AngloGold Ashanti's narrative projects $9.5 billion revenue and $3.0 billion earnings by 2028. This requires 7.6% yearly revenue growth and about a $1.2 billion earnings increase from $1.8 billion today.

Uncover how AngloGold Ashanti's forecasts yield a $98.00 fair value, in line with its current price.

Exploring Other Perspectives

AU 1-Year Stock Price Chart
AU 1-Year Stock Price Chart

Simply Wall St Community members offer 11 fair value estimates for AngloGold Ashanti, ranging from US$18.63 to US$146.19, underscoring how far apart individual views can be. When you set those opinions against the current focus on gold driven revenue strength and cash flow supported dividends, it becomes even more important to weigh multiple scenarios for the company’s longer term performance.

Explore 11 other fair value estimates on AngloGold Ashanti - why the stock might be worth less than half the current price!

Build Your Own AngloGold Ashanti Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your AngloGold Ashanti research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
  • Our free AngloGold Ashanti research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AngloGold Ashanti's overall financial health at a glance.

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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.

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