Scotiabank Lowers Earnings Projections for AngloGold Ashanti

On March 19, 2025, Scotiabank announced a revision to its earnings estimates for AngloGold Ashanti plc (NYSE:AU – Free Report). In a report sent to investors, Scotiabank analyst T. Jakusconek revised the profit forecast for the mining company, expecting its earnings per share (EPS) for fiscal year 2025 to be $2.86, a decrease from the previous estimate of $3.09. As of now, the investment firm maintains a ‘Sector Perform’ rating on the stock, with a target price set at $34.00. This is in contrast to the consensus prediction, which has AngloGold Ashanti’s current full-year earnings pegged at $3.83 per share. Furthermore, Scotiabank anticipates FY2026 earnings to be around $2.51 EPS.

Recently, AngloGold Ashanti reported its quarterly earnings on February 19, 2025, revealing an EPS of $0.89 for the quarter. This was below analysts’ estimates, which had anticipated earnings of $0.99 per share, indicating a shortfall of $0.10. The company's revenue held steady at $1.75 billion for the quarter, aligning exactly with analyst expectations.

Other financial analysts have also shared their evaluations of the company. On February 20, 2025, Royal Bank of Canada reaffirmed an ‘outperform’ rating and set a price target of $36.00 for AngloGold Ashanti shares. Conversely, JPMorgan Chase & Co. adjusted their price target downward from $37.00 to $32.00, stating an ‘overweight’ classification on the stock as of December 6, 2024. The market currently has mixed views on the stock, with one analyst issuing a sell rating, two analysts suggesting a hold, and four giving buy ratings. Data from MarketBeat suggests that the average stock rating is ‘Hold’, along with an average price target set at $34.00.

AngloGold Ashanti Stock Performance

As of Monday, AngloGold Ashanti’s stock opened at $35.43. The company’s fifty-day moving average stands at $30.78, while its 200-day moving average is $27.90. Key financial ratios indicate a quick ratio of 1.14, a current ratio of 1.73, and a debt-to-equity ratio of 0.46. The mining company’s market capitalization is approximately $14.87 billion, with a price-to-earnings ratio (P/E) of 11.07, and a beta of 0.92. Over the past twelve months, the stock has ranged from a low of $21.23 to a high of $36.69.

Institutional Trading of AngloGold Ashanti

Recently, several institutional investors have modified their stakes in AngloGold Ashanti. Charles Schwab Investment Management Inc. significantly increased its position in the company by 297.9% during the third quarter, now holding 259,120 shares valued at $6.9 million after an addition of 193,992 shares. Qsemble Capital Management LP has taken a new position in AngloGold Ashanti worth about $368,000 during the same period. Additionally, FMR LLC raised its holdings by 39.5%, now controlling 10,448,445 shares valued at $277.97 million after acquiring an extra 2,957,304 shares. Meanwhile, Bridgewater Associates LP expanded its stake by 80.2%, owning 185,968 shares valued at $4.95 million. Furthermore, Zurcher Kantonalbank Zurich Cantonalbank increased its holdings by 4.8%, with a total of 209,975 shares worth $5.59 million. Presently, institutional investors control around 36.09% of the company’s shares.

AngloGold Ashanti Increases Dividend

AngloGold Ashanti has also announced a semi-annual dividend, which is scheduled for payment on March 28, 2025. Shareholders of record as of March 14, 2025, will receive a dividend of $0.69 per share, following an ex-dividend date also on March 14, 2025. This represents a notable increase from the previous semi-annual dividend of $0.22, resulting in a dividend yield of 2.8%. The current dividend payout ratio for the company is approximately 43.13%.

Company Overview: AngloGold Ashanti

AngloGold Ashanti plc is primarily engaged in gold mining and operates across Africa, Australia, and the Americas. The company focuses on gold exploration and production, while also generating silver and sulphuric acid as by-products. Its principal asset is the fully owned Geita mine, which lies within the Lake Victoria goldfields located in Mwanza, northwestern Tanzania.

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