03. AngloGold Ashanti plc (NYSE:AU)
Upside Potential: 53%
Forward P/E Ratio: 6.05
Year To Date Share Price Gain: 24%
AngloGold Ashanti plc stands out as one of the most compelling gold stocks to consider right now, with a forward P/E ratio of 6.05 and an impressive upside potential of 53%, based on a target price of $35.64 compared to its current share price of $23.26. The stock has gained 24% year-to-date, further cementing its place among the best gold investment opportunities.
Operating as a leading gold miner across Africa, Australia, and the Americas, AngloGold Ashanti also produces silver and sulfuric acid as by-products. Its flagship Geita mine in Tanzania showcases the company’s robust production capabilities. The company has demonstrated remarkable financial performance, highlighted by a 339% year-over-year increase in adjusted EBITDA to $746 million in Q3 2024 and a 17-fold rise in free cash flow to $347 million. These results underscore its operational efficiency and ability to capitalize on higher gold prices.
CEO Alberto Calderon emphasized the company’s commitment to cost management and operational excellence, noting that higher revenues from strong gold prices have translated directly into better margins. Despite inflationary pressures, AngloGold’s disciplined approach has kept total cash costs for managed operations in check, rising only 3% year-over-year to $1,186 per ounce.
Production from managed operations rose 2% year-over-year to 586,000 ounces in Q3 2024, driven by standout performances at key sites such as Obuasi (up 15%) and Sunrise Dam (up 14%). The average gold price received during the quarter surged 28% to $2,449 per ounce, significantly boosting earnings.
AngloGold Ashanti’s strategic acquisition of Centamin plc is set to enhance its portfolio with the addition of the Sukari mine, a Tier-One asset with low all-in sustaining costs. This move is expected to be accretive to free cash flow and net asset value while offering opportunities for cost synergies and portfolio optimization.
With strong fundamentals, efficient cost management, and a clear growth strategy, AngloGold Ashanti is well-positioned to deliver long-term value, making it a top choice for gold investors.