AngloGold Ashanti Limited (AU): history, ownership, mission, how it works & makes money

A Brief History of AngloGold Ashanti Limited (AU)

Formation and Early Years

AngloGold Ashanti Limited was formed in 2004 through the merger of AngloGold Limited and Ashanti Goldfields Company Limited. This merger created a global leader in gold production, with a significant asset base across several continents.

Major Operations

As of the end of 2022, AngloGold Ashanti operates in multiple countries, with production facilities in:

• South Africa
• Ghana
• Australia
• Brazil
• Argentina

Financial Performance

For the year ended December 31, 2022, AngloGold Ashanti reported:

• Total revenue of $4.09 billion
• Net income of $1.16 billion
• Gold production of 2.6 million ounces

Market Capitalization

As of October 2023, the market capitalization of AngloGold Ashanti is approximately $11.6 billion.

Stock Performance

The share price of AngloGold Ashanti (AU) on October 20, 2023, closed at $18.50. The stock has seen fluctuations with a 52-week range between $15.15 and $23.05.

Acquisitions and Assets

In 2022, AngloGold Ashanti announced plans to acquire the remaining 50% interest in the Obuasi mine in Ghana, which has been a significant contributor to its production capabilities. The total investment for this acquisition was approximately $400 million.

Environmental and Social Governance

AngloGold Ashanti has committed approximately $100 million towards sustainability initiatives as of 2023, focusing on community development, environmental restoration, and carbon neutrality.

Dividends

In March 2023, AngloGold Ashanti declared a dividend of $0.50 per share, reflecting a strong commitment to returning value to its shareholders.

Future Outlook

The company anticipates gold production to be in the range of 2.5 to 2.7 million ounces for the fiscal year 2023, adapting to market demand and production efficiencies.

Challenges Faced

AngloGold Ashanti, like many mining companies, faces challenges including fluctuating gold prices, regulatory changes, and operational costs. The average cost of production per ounce in 2022 was approximately $1,100.

A Who Owns AngloGold Ashanti Limited (AU)

Ownership Structure

AngloGold Ashanti Limited is owned by a combination of institutional investors, corporate entities, and private shareholders. The top shareholders as of the end of 2023 are as follows:

Market Capitalization

As of October 2023, the market capitalization of AngloGold Ashanti Limited is approximately $8.83 billion.

Recent Financial Highlights

For the fiscal year ending December 31, 2022, AngloGold Ashanti reported the following:

• Revenue: $5.29 billion
• Net Income: $1.15 billion
• EBITDA: $2.14 billion
• Operating Cash Flow: $1.45 billion
• Gold Production: 2.479 million ounces

Geographic Distribution of Ownership

The ownership of AngloGold Ashanti is geographically distributed as follows:

Institutional Investor Profiles

Key institutional investors include:

• VanEck Vectors Gold Miners ETF - Focuses on investing in companies involved in the gold mining sector.
• BlackRock, Inc. - One of the world’s largest asset management firms with substantial investments in various sectors.
• Franklin Templeton Investments - Offers mutual funds and investment solutions across multiple asset classes.
• Fidelity Investments - Known for its diversified investment offerings and strong equity research.
• Goldman Sachs Group, Inc. - Global investment banking, securities, and investment management firm.

Shareholder Meetings and Votes

Annual general meetings are held to discuss and vote on significant corporate actions. In 2023, the key votes included:

• Approval of the Executive Compensation Plan: 75% voted in favor.
• Appointment of External Auditors: 80% voted in favor.
• Approval of Shareholder Proposals: 55% voted in favor.

Future Projections

Analysts project the following for AngloGold Ashanti in the upcoming fiscal year:

• Expected Revenue: $5.5 billion
• Target Gold Production: 2.5 million ounces
• Projected Operating Cash Flow: $1.6 billion

AngloGold Ashanti Limited (AU) Mission Statement

Corporate Vision

The mission statement of AngloGold Ashanti emphasizes its commitment to being the leading mining company in the world, known for its sustainable practices and stakeholder relations. The company aims to deliver superior value to its shareholders, employees, and local communities.

Core Values

• Integrity: Upholding ethical standards in all business practices.
• Respect: Acknowledging the rights and values of all stakeholders.
• Responsibility: A commitment to the environment and sustainable practices.
• Teamwork: Collaborating effectively to achieve common goals.
• Innovation: Embracing new technologies and methodologies to enhance efficiency.

Strategic Objectives

The strategic objectives of AngloGold Ashanti focus on maximizing shareholder value while ensuring operational excellence and sustainable development. The company aims to:

• Increase gold production to over 3 million ounces annually.
• Reduce all-in sustaining costs (AISC) to below $1,000 per ounce.
• Achieve a year-on-year improvement in safety performance.
• Enhance community engagement and socio-economic development initiatives.

Recent Financial Performance

As of the end of 2022, AngloGold Ashanti reported:

Commitment to Sustainability

In line with its mission, AngloGold Ashanti prioritizes sustainability in its operations. The following initiatives have been implemented:

• Investing $20 million annually in community development projects.
• Reducing greenhouse gas emissions by 30% by 2030.
• Achieving 100% water recycling in its operational processes.
• Increasing the share of renewable energy in its energy mix to 30% by 2030.

Global Presence

AngloGold Ashanti operates in several countries across four continents. The locations include:

Stakeholder Engagement

Engagement with stakeholders is a fundamental principle of AngloGold Ashanti’s mission. The company conducts:

• Regular community consultations and feedback sessions.
• Partnerships with local governments and NGOs.
• Annual sustainability reports to communicate performance and strategies.

How AngloGold Ashanti Limited (AU) Works

Overview of AngloGold Ashanti Limited

AngloGold Ashanti Limited is one of the largest gold mining companies in the world, operating in multiple countries. As of December 2022, the company reported a market capitalization of approximately $8.66 billion. The enterprise primarily engages in the exploration, mining, and production of gold, alongside silver, copper, and other minerals.

Geographical Operations

AngloGold Ashanti operates in several regions globally, including:

Production Statistics

In 2022, AngloGold Ashanti produced a total of approximately 3.39 million ounces of gold, with a reported all-in sustaining cost (AISC) of $1,220 per ounce.

Financial Performance

The financial performance of AngloGold Ashanti can be summarized with the following key metrics from the 2022 fiscal year:

Market Position and Shareholders

As of October 2023, AngloGold Ashanti's shares trade on the New York Stock Exchange under the ticker symbol AU. The company has a diverse shareholder base, including institutional investors, retail investors, and sovereign wealth funds.

• Top 5 Institutional Shareholders:
• BlackRock, Inc.
• The Vanguard Group, Inc.
• State Street Global Advisors
• Dimensional Fund Advisors LP
• Goldman Sachs Group, Inc.

Sustainability and Social Responsibility

AngloGold Ashanti has committed to various sustainability initiatives. In 2022, the company reported spending approximately $40 million on community development and environmental restoration projects globally.

Technological Innovations

The company has invested significantly in technology to enhance its mining operations, with approximately $30 million allocated towards automation and advanced data analytics in mining processes in 2022.

Future Outlook

Looking ahead, AngloGold Ashanti aims to achieve a production target of around 3.5 million ounces by 2025, with plans to further reduce costs and improve operational efficiency.

How AngloGold Ashanti Limited (AU) Makes Money

Gold Production

AngloGold Ashanti's primary revenue stream comes from the production of gold. In 2022, the company produced approximately 2.48 million ounces of gold. The average realized gold price for the same year was around $1,800 per ounce.

Revenue from Operations

In 2022, AngloGold Ashanti reported total revenues of $4.5 billion. The breakdown of revenues from gold sales is reflected in the table below:

Cost of Production

The cost of production significantly impacts profitability. In 2022, the all-in sustaining cost (AISC) was approximately $1,200 per ounce. This cost includes operational costs, sustaining capital, and exploration expenditures.

Geographic Diversification of Assets

AngloGold Ashanti operates in several countries, which aids in risk diversification. Key countries include:

• South Africa
• Ghana
• Australia
• Brazil
• Argentina

Cash Flow and Profitability

For the fiscal year 2022, AngloGold Ashanti reported a cash flow from operations of $1.2 billion. The net income for the year was recorded at $510 million.

Hedging Activities

The company engages in hedging to manage price risks associated with gold. As of December 2022, AngloGold Ashanti had hedged approximately 600,000 ounces of gold at an average price of $1,750 per ounce.

Dividend Policy

AngloGold Ashanti pays dividends based on its financial performance. The dividend per share for 2022 was $0.90, reflecting a payout ratio of approximately 30% of net earnings.

Exploration and Development Projects

Investment in exploration is crucial for future growth. In 2022, AngloGold Ashanti spent approximately $210 million on exploration and evaluation projects across various regions.

Market Position and Competitors

AngloGold Ashanti is one of the largest gold mining companies globally. Here is a comparative overview of some competitors based on market capitalization:

Strategic Initiatives

In 2022, AngloGold Ashanti focused on cost reduction initiatives that aimed to decrease operational costs by approximately 10% over the next two years, ensuring better profitability amid fluctuating gold prices.