Stock Analysis

Is Broad Russell Index Inclusion Altering The Investment Case For AngloGold Ashanti (AU)?

NYSE:AU
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  • On June 30, 2025, AngloGold Ashanti plc (NYSE:AU) was added to a wide range of Russell indexes, including both value and growth benchmarks spanning small, mid, and large cap segments.
  • This rare inclusion across multiple key indexes highlights AngloGold Ashanti’s broad investment appeal to a diverse range of institutional and index-tracking investors.
  • Now, we’ll explore how AngloGold Ashanti’s broad-based index inclusion could influence its investment narrative and capital inflows.

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AngloGold Ashanti Investment Narrative Recap

To invest in AngloGold Ashanti, you need to believe in the long-term resilience of gold mining, the company's capacity to manage operational risks across diverse geographies, and the potential benefits from its new U.S. market presence. The recent index additions reflect enhanced visibility among institutional investors, but do not immediately change the company’s biggest short-term catalyst, realizing operational and cost synergies from its recent Centamin acquisition, nor do they significantly mitigate the risks tied to gold price volatility or production disruptions.

Among recent news, the new dividend policy, setting a minimum US$0.50 per share annually with quarterly payments, stands out, especially as AngloGold Ashanti seeks to broaden its investor base after these index inclusions. This policy could appeal to income-focused shareholders, but the ability to sustain dividends still hinges on effective cost control and operational execution as core catalysts for stability and growth.

Yet, despite these advances, it’s important for investors to watch for contrasting risks around weather-driven production impacts, as...

Read the full narrative on AngloGold Ashanti (it's free!)

AngloGold Ashanti's narrative projects $8.3 billion revenue and $1.9 billion earnings by 2028. This requires 12.9% yearly revenue growth and a $0.9 billion increase in earnings from the current $1.0 billion.

Uncover how AngloGold Ashanti's forecasts yield a $35.06 fair value, a 26% downside to its current price.

Exploring Other Perspectives

AU Community Fair Values as at Jul 2025
AU Community Fair Values as at Jul 2025

Eleven private investors in the Simply Wall St Community arrived at fair value estimates from as low as US$17.84 up to US$121.50 per share. While opinions differ widely, controlling costs remains crucial for AngloGold Ashanti’s performance and is top of mind for many market participants considering the stock’s future direction.

Explore 11 other fair value estimates on AngloGold Ashanti - why the stock might be worth over 2x more than the current price!

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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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