Gold prices (GCV25) started this year, which led to sharp gains in gold mining companies. Specifically, Anglogold Ashanti (AU) outperformed most of its peers and has more than three times this year. It also has one of the most generous profit policies in the area of gold mining, and investors in obtaining payment payments with the high gold prices in the company’s cash flows, and therefore, stock profits. Let’s discuss whether AU is still buying or if it is too late to buy this outstanding stock now.
First of all, let’s decode the continuous gathering in gold prices. There are structural drivers such as the central purchase of the central bank that supports gold prices. Moreover, the Gold’s Stellar Rally has sparked attention from both retail investors and institutions, especially those who find cryptocurrencies outside their league. President Donald Trump’s commercial policy was the back wind of precious minerals, and it appeared among the most important “Trump deals”.
Investing in gold
Recently, Dovish Fed, which reduced prices by 25 basis points in September – has strengthened the appetite for gold investors. Low interest rates are positive in theory for gold, which is one of the non -carriers of interests, and thus loses the assets that carry interest in high interest rates. The government closure concerns have fed the gathering in gold, which is the ultimate origin.
In general, the overall gold environment was very supportive, which was reflected in its work.
I was upward on gold – and even gold mining companies, which is a gold -tied play – for some time now. The Bullishness has resulted in well, as both gold and gold mining companies have achieved incredibly well this year. Specifically, AU Stock continued to build on YTD gains, as it rose only 140 % when the company was last covered in August.
The African Union has a good profit distribution policy and is currently paying a quarterly payment of $ 0.125 per share. In addition, he is committed to issuing profits to pay 50 % of the free cash flow for investors at the end of each year.
However, slightly went out of this policy and announced the distribution of temporary profits of $ 0.80 during her profit call in the second quarter of her life, which included $ 0.125 basic profit distributions and real payment to reach 50 % of free cash flows in the first half.
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