AU Tumbles 2.33% on Technical Downturn Despite Record Gold Output and $2B Cash Reserves Ranks 418th in Trading Volume

AngloGold Ashanti (AU) closed 2.33% lower on Sept. 4, 2025, with a trading volume of $260 million, ranking 418th in market activity. The decline follows technical indicators suggesting potential downward momentum, as Bollinger Bands narrowed and a KDJ death cross formed on the 15-minute chart around 13:45, signaling reduced price volatility and bearish momentum.

The miner reported a strong Q2 2025 performance, with gold production rising 21% to 804,000 ounces, driven by output from Obuasi, Geita, and Sukari mines. Higher gold prices—averaging $3,287 per ounce—boosted headline earnings by 151% to $639 million and free cash flow by 149% to $535 million. Despite inflationary pressures, the company cut adjusted net debt by 92% to $92 million and maintained $3.4 billion in liquidity, underscoring financial discipline.

Analysts project a 124% year-over-year EPS growth, with a $57 price target reinforcing the stock’s undervaluation relative to its growth trajectory. The current P/E ratio of 15.83 lags significantly behind the gold mining industry average of 26.93 and the U.S. Metals and Mining sector’s 25.6x. Operational expansion, including Sukari mine integration expected to deliver 500,000 ounces annually, further supports long-term growth prospects.

Backtesting results indicate the stock’s recent technical patterns align with historical bearish setups, with the KDJ death cross and tightening Bollinger Bands historically preceding price declines. However, the firm’s robust $2 billion cash reserves and a 1.5–2.0% dividend yield position it as a resilient play in a gold-focused market, despite near-term risks like reserve-life challenges in Brazil and Argentina.