Deutsche Bank Starts AngloGold Ashanti (AU) at Buy; Cash Flow Unleashed

Deutsche Bank initiates coverage on AngloGold Ashanti (NYSE: AU) with a Buy.

Deutsche analyst says, "The current high gold price environment, coupled with the buy-out of AngloGold's hedge book, has allowed FCF to increase substantially: the company will thus see a strengthening balance sheet. The result will be a potentially large cash balance, supported by sustainable FCF in the medium term, in our opinion. We believe AngloGold will be able to cash-fund projects with potential substantial upside to estimated dividends, leading to a rerating. In addition, a sustained recovery in flagship operations like Geita would lead to upside to our valuation."

For more ratings news on AngloGold Ashanti click here and for the rating history of AngloGold Ashanti click here.

Shares of AngloGold Ashanti closed at $45.21 yesterday.

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