A look at AngloGold Ashanti (NYSE:AU) valuation after strategy shift ending Argentina exploration deals

AngloGold Ashanti (NYSE:AU) has chosen to terminate its option agreement with Latin Metals for three properties in Argentina, signaling a shift in the company’s Greenfields Exploration strategy. The decision ends further exploration work at the sites.

See our latest analysis for AngloGold Ashanti.

AngloGold Ashanti’s share price tells a compelling story. Despite a recent 8.6% decline over the past month, shares have surged 18.7% in the last 90 days and delivered a staggering 175.4% year-to-date price return. Long-term holders have enjoyed a 156.9% total return over twelve months. This strong upward momentum contrasts with the company’s recent exit from key Argentine exploration projects, showing how strategic pivots can occur alongside major share price outperformance.

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With rapid share price gains, strong financial momentum, and a notable disconnect between strategy and stock performance, investors must ask whether AngloGold Ashanti is undervalued at current levels or if the market has already priced in all its future growth.

Most Popular Narrative: 24.1% Undervalued

The narrative sets AngloGold Ashanti's fair value well above its latest closing price, suggesting room for upside even after the stock's significant rally. This perspective is built on the outlook for strengthening margins and accelerating revenue, with important quantitative drivers shaping that view.

Ongoing optimization of asset portfolio toward lower-risk jurisdictions, combined with disciplined cost control (notably, stable cash cost and AISC in real terms despite sectoral inflation) is improving production stability and supporting structurally stronger net margins. Organic production growth from brownfield projects (Obuasi ramp-up, Cuiabá, Siguiri, Geita, and upcoming Nevada developments) is set to increase output volumes and extend mine life, driving future revenue and earnings growth over the next decade.

Read the complete narrative.

What’s fueling this bullish perspective? It’s all about the interplay of rising profit margins and ambitious growth assumptions. Want to see where analysts think the next leap comes from, or which financial levers really move the needle? Find out what projections drive AngloGold Ashanti’s premium narrative fair value.

Result: Fair Value of $88.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising operational costs and regulatory uncertainties could challenge AngloGold Ashanti’s bullish outlook if profitability or project timelines come under pressure.

Find out about the key risks to this AngloGold Ashanti narrative.

Build Your Own AngloGold Ashanti Narrative

If you have a different perspective, or want to run the numbers and build your own view, you can create a unique narrative in under three minutes by using Do it your way.

A great starting point for your AngloGold Ashanti research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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