Breakingviews - Gold surge adds glitter to tarnished miners
Written by Emily J. Thompson, Senior Investment Analyst
Source: Reuters
Gold Miners' Performance: Despite historically poor performance as an inflation hedge, gold miners are currently generating cash and boosting dividends, with some analysts suggesting they may be undervalued compared to their net asset values due to conservative gold price forecasts.
Investor Sentiment Shift: There is a potential shift in investor sentiment towards gold, as evidenced by increased sales of gold bars and positive inflows into gold ETFs, indicating that if the gold price remains high, shares in gold mining companies could significantly rise.
Analyst Views on AU
Wall Street analysts forecast AU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AU is 104.40 USD with a low forecast of 90.00 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 103.050
Low
90.00
Averages
104.40
High
131.00
Current: 103.050
Low
90.00
Averages
104.40
High
131.00
About AU
AngloGold Ashanti plc is a global gold mining company with a diverse portfolio of operations, projects and exploration activities in 10 countries, across four continents. The Company’s diverse portfolio includes approximately 11 operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo (DRC), Egypt, Ghana, Guinea and Tanzania. The Company’s portfolio includes Africa, the Americas, and Australia. Its Africa portfolio includes Kibali- managed by Barrick Gold Corporation, Egypt (Sukari), Ghana (Iduapriem and Obuasi), Guinea (Siguiri) and Tanzania (Geita). The Americas hosts three of its operations, one in Argentina and two in Brazil, as well as two greenfield projects in Colombia and a significant new greenfield development in Nevada in the United States. Australia hosts two of its operations, which include Sunrise Dam and Tropicana, both in the north-eastern goldfields in the state of Western Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
