AngloGold Ashanti Limited (AGG)



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General Information
Company Name: AngloGold Ashanti Limited
Stock Code: AGG
Website: www.anglogoldashanti.com
GICS Sub-Industry: Gold
Market Cap ($M): 340
Equiv. Shares (M): 89

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 3.810 $ 3.810 $ 3.810 $ 3.810 $ 3.720 499 $ 0.090  2.419 %

Company Overview

Business Description:
AngloGold Ashanti 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 1,186.4 45.7 -37.1 15.1 5.7 0.8 --
2011  A 1,528.2 72.6 NaN 12.0 10.2 1.2 --
2010  A 74.8 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) $340 M -0.3698 -- -- 8.3297 -- -- 0.0150 -- --
Newcrest Mining (NCM) $8,355 M -0.5837 -0.1158 -0.5166 18.5091 20.9334 43.3055 0.0110 0.0000 0.0000
Northern Star Resources (NST) $1,039 M 0.2941 -0.0909 4.6450 26.8182 29.5000 5.2259 0.0198 0.0122 0.0767
OceanaGold (OGC) $1,049 M -- -- -0.3917 -- 8.0705 13.2673 0.0000 0.0000 0.0000
OZ Minerals (OZL) $1,432 M -- -- -0.1739 -- 52.6198 63.6977 0.0424 0.0238 0.0159

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AGG -- 8.33 1.39 -- 1.51
Market 1.01 16.6 1.26 2.17 1.67
Sector 0.85 12.6 0.68 1.81 5.17

Directors
Name Position Start Date
Mr Tony O'Neill -- 20 February 2013
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
Mr David Hodgson Non-Executive Director 25 April 2014
Professor Wiseman Nkuhlu Non-Executive Director 01 June 2009
Ms Nozipho Patricia January-Bardill Non-Executive Director 01 October 2011
Mr Michael James Kirkwood Non-Executive Director 01 June 2012
Mr Sipho Mila Pityana Non-Executive Director,Non-Executive Chairman 13 February 2007

Management
Name Position
Maria Esperanza Sanz Perez Company Secretary

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

Calendar of Events
Date Event
18 May 2015 Report (Quarterly)
18 February 2015 Report (Quarterly)
05 November 2014 Report (Quarterly)
06 August 2014 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 www.morningstar.com.au/fsg.asp.

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