Soumya Roy

The article compares AngloGold Ashanti (AU) with Gold Fields (GFI) and concludes that AU presents a more compelling investment case. The author highlights AU's superior third-quarter production, a substantial free cash flow exceeding $1 billion, and a more robust balance sheet with $2.57 billion in cash reserves and lower debt levels. The analysis further points to significant growth potential from the expansion of the Geita mine, the modernization of the Obuasi mine, and new operational exposure in the United States. A key takeaway is that despite its stronger financial and operational standing, AU's stock is trading at a lower forward earnings multiple than GFI, suggesting a valuation discount.