Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 23 Sept 2026
AU· Materials
AngloGold Ashanti
AngloGold Ashanti's 48% operating margin and strong balance sheet contrast with its cyclical gold industry, raising questions about long-term durability.
Buffett fit
Partial fit
Owner
52
Durability
38
Management
73
Price
76
Score updated 23 Oct 2026 · analysis from 23 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Materials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned AngloGold Ashanti entirely, the next 10 years would involve managing the cyclicality of gold prices while maintaining operational efficiencies.
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The durability of AngloGold Ashanti hinges on gold price stability and operational efficiency.
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Management has shown discipline with a debt/equity ratio of 0.27 and interest coverage of 26.3, indicating prudent financial management.
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The current of 13.6 and EV/ of 10.4 suggest a reasonable valuation, but the yield of 6.57% is slightly below the ideal 8-10% range.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 48.1% is top-quintile in its sector.
- 2Net margin of 31.1% significantly exceeds the sector's top-quintile cutoff of 15.5%.
- 3 of 28.5% is well above the sector top-quintile cutoff of 12.6%.
- 4Interest coverage ratio of 26.3 indicates strong ability to meet debt obligations.
Concerns
7- 15-year average of 9.3% falls below the sector's top-quintile threshold.
- 2Not profitable in every year of the last 5 years, indicating earnings volatility.
- 3Share count CAGR of 4.86% suggests dilution over time.
- 4 yield of 6.57% is below the preferred 8-10% range.
Price history
$85.19+361.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
AngloGold Ashanti operates gold mining projects across Africa, the Americas, and Australia. The company's flagship Geita project in Tanzania contributes significantly to its revenue. With a of 52.2% and of 48.1%, the company benefits from efficient operations. However, its reliance on gold prices introduces volatility. Unit economics are favorable with a net margin of 31.1%, indicating strong profitability.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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