Cara Community GSM: AngloGold Ashanti

AngloGold Ashanti Ltd. (NYSE: AU) reviewed 11-10-2020

(All figures in USD)

Market Cap:       $10.0 Billion                       Share Price:        $24.22

Shares outstanding: 415,000,000 as of 31 Dec 2019

Cash and cash equivalents: $463 Million as of 31 Dec 2019

Net Debt:  $875 M as of 30 Sep 2020

Current operations: Yes

Insider holdings: Nil                         Institutional:  292 institutions own about 35%



CEO: Christine Ramon (Interim)                 HQs: Johannesburg, South Africa

AngloGold Ashanti Limited operates 14 mines and three projects in nine countries in Continental Africa, the Americas, and Australia

Q3 2020 highlights:

  • Free cash flow was reported at $337 Million (USD). This was a 4x increase over 3Q2019
  • Cash from operations was reported as $551 Million from $353 Million in 3Q2019
  • Production of 837,000 oz of gold in Q3 at a cash cost of $801 per oz
  • AISC reported as $1044 per ounce in the 3rd quarter
  • Projected estimates of 3.03 to 3.10 Mil oz gold for the full year 2020 at $1060-1120 AISC
  • The dividend was doubled and will now be paid twice yearly versus annually
  • The company also reduced net debt to its lowest levels since 2011
  • Sold a $200 Million asset in S. Africa to Harmony Gold Mining on 30 Sept 2020. It is also closing on sales of assets in Mali (Morila, Sadiola) and is owed $66 Million from the DRC on the sale of Kibali

Bottom line:

  • Being re-organized, they have sold all mines in South Africa
  • Has huge reserves and 93 M oz gold resources and five mines under development
  • Buying opportunity

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