AngloGold Ashanti Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

AngloGold Ashanti Limited (ASX: AGG) is a mining and exploration company that produces gold and other by-products. The company owns and operates mines in various countries across Africa, the Americas and Asia-Pacific.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top Shareholders: As per the company's FY21 annual report, the Public Investment Corporation (PIC) held 10.62% of the company's issued share capital, while no other shareholder held more than 10% in AGG.

1.4 Key Metrics: AGG reported a high net margin of around 14.5% in 1HFY22 compared to the industry median of 6.5%. Further, the Company reported a high return on equity in 1HFY22 of around 7.2% compared to the industry median of 1.0%. Below is captured the trend of the EBITDA margin and current ratio:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Updates:

2.2 Insights of 3QFY22: During 3QFY22, the free cash flow surged to USD 169mn compared to USD 17mn in 3QFY21, while the adjusted net debt decreased to USD 746mn relative to USD 871mn in 3QFY21.

2.3 Sustainable Initiative: The company expect to generate 60% of planned emission reduction from renewable energy projects, which includes wind and solar projects, the introduction of cleaner grid power and partial fleet electrification.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 13, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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