Shares of AngloGold Ashanti PLC (NYSE: AU) scaled a new 52-week high of $32.34 on Aug 20 before ending the session lower at $32.09. The upside was fueled by a spike in gold prices.
AngloGold Ashanti has a market capitalization of $13.5 billion and currently carries a Zacks Rank #3 (Hold).
Shares of the company have gained 71.7% year to date, outpacing the industry's 28.9% growth and the S&P 500's 17.7% rise. Meanwhile, the Basic Materials sector has declined 4.2% in the same time frame.
Image Source: Zacks Investment Research
What's Driving the Stock?
Solid H1 Results: AngloGold Ashanti's shares have gained 15% since the company reported strong first-half fiscal 2024 results on Aug 6. Adjusted earnings per share were 74 cents, a 429% improvement from 14 cents in the prior year's comparable period.
The substantial increase in earnings was attributed to increased gold sales, higher average gold prices and lower operating costs. Earnings also benefited from higher equity earnings from joint ventures, an increase in finance income and lower foreign exchange losses, which were partly offset by higher losses on non-hedge derivatives, rising corporate and operating expenses and increased taxation.
The company witnessed a significant turnaround in its Brazil operations, which also contributed to the year-over-year gain in cash flow and earnings. Last year, it had taken steps to restructure the business in Brazil after a sustained period of losses, which led to the improvement.
Gold production rose 2% year over year to 1.25 million ...
