AngloGold Ashanti Limited (AGG)

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General Information
Company Name: AngloGold Ashanti Limited
Stock Code: AGG
GICS Sub-Industry: Gold
Market Cap ($M): 232
Equiv. Shares (M): 89

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 2.600 $ 2.520 $ 2.600 $ 2.500 $ 2.600 3,770 0%

Company Overview

Business Description:
AngloGold Ashanti Australia Limited (AGG) is a gold exploration, mining and marketing companies. AGG holds a portfolio of operations and projects on four continents. The geographic operation segments include South Africa, Continental Africa, Americas, and Australasia.

Strategy Analysis:
The focus of AGG is to continuously build upon its resource base supported by its greenfields pipeline. The company also aims to grow assets that have clearly defined capital and operating costs and significant resources and reserves. If assets do not meet these criteria they are fixed or sold. The last few years have seen AGG reduce costs, boost production and eliminate their hedge book as they seek to benefit from the high gold price. Two areas of concern are the number of miner fatalities, which highlights the need for OH&S improvements, and South African power reliability (increased costs), which is critical to the operations of AGG. AngloGold Ashanti provided its September 2011 quarterly activities report, reporting record adjusted headline earnings (AHE) of $457m, or 118 US cents a share, up 51% year-on-year; net profit attributable to equity shareholders of $456m; quarterly cash inflow from operations more than doubled to $863m year-on-year; quarterly free cash flow of $300m after capex, finance costs, tax and translation impacts; net debt declined by 28% to $620m; AHE and cash inflow from operations for 9 months ended 30 September 2011 above $1bn and $2bn respectively; and total cash costs of $737/oz, well within guidance - production marginally up on previous quarter at 1.092Moz.

Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A 1,204.7 45.7 -37.0 15.1 5.7 0.8 --
2011  A 1,573.5 72.6 NaN 12.0 10.2 1.2 --
2010  A 126.9 4.0 -- 231.0 3.9 0.4 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
Anglogold (AGG) $232 M -0.3698 -- -- 5.6843 -- -- 2.19 -- --
Newcrest Mining (NCM) $10,471 M -0.0429 0.0206 0.1825 24.2370 23.7483 20.0823 0.00 0.00 0.00
Northern Star Resources (NST) $1,434 M 0.2151 2.2157 0.5607 30.1746 9.3835 6.0124 1.45 2.48 4.19
OceanaGold (OGC) $816 M -- -0.4488 -0.0380 6.1290 11.1203 11.5599 1.81 0.96 0.96
OZ Minerals (OZL) $1,168 M -- -0.1408 1.4058 28.0817 32.6825 13.5850 2.60 0.68 0.68

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AGG -- 5.68 0.95 -- 1.03
Market 0.90 16.8 1.30 2.44 1.60
Sector 0.58 13.0 0.69 2.19 2.24

Name Position Start Date
Ms Christine Ramon Chief Executive Officer,Executive Director 01 October 2014
Mr Srinivasan Venkatakrishnan Executive Director,Chief Financial Officer,Chief Executive Officer 01 August 2005
Mr Rhidwaan Gasant Non-Executive Director 12 August 2010
Mr Rodney John Ruston Non-Executive Director 02 January 2012
Professor Wiseman Nkuhlu Non-Executive Director 01 June 2009
Ms Nozipho Patricia January-Bardill Non-Executive Director 01 October 2011
Mr Albert Garner Non-Executive Director 01 January 2015
Ms Maria Ritcher Non-Executive Director 01 January 2015
Mr Sipho Mila Pityana Non-Executive Director,Non-Executive Chairman 13 February 2007

Name Position
Maria Esperanza Sanz Perez Company Secretary

Substantial Shareholders
Holding Name
153,711,993 (40.10%) Bank of New York Mellon Corporation
28,607,495 (7.46%) Paulson & Co.Inc
20,050,361 (5.23%) Public Investment Corporation
20,108,121 (5.25%) Investec Asset Management (PTY) Limited
20,510,646 (5.35%) Allan Gray Unit Trust Management Limited

Calendar of Events
Date Event
22 February 2016 Report (Quarterly)
02 November 2015 Report (Quarterly)
10 August 2015 Report (Quarterly)
18 May 2015 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


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