Will AU's Exploration Strategy Aid Its Gold Mineral Reserve?

AngloGold Ashanti added 23.1 million ounces to reserves over the past five years through exploration and is targeting further growth via resource-to-reserve conversion. The reserve build materially strengthens its long-term production base and supports upside to valuation and mine-life extension. This is a company-specific positive development likely to lift investor expectations and move the stock, but it is not market-wide news.

Analysis

AngloGold Ashanti added 23.1 million ounces to reserves over the past five years through exploration and is targeting further growth via resource-to-reserve conversion. The reserve build materially strengthens its long-term production base and supports upside to valuation and mine-life extension. This is a company-specific positive development likely to lift investor expectations and move the stock, but it is not market-wide news.