Anglogold Ashanti Ltd.

Anglogold Ashanti Ltd. (AU - Snapshot Report) is rallying in response to rising gold prices and strong first quarter-results.

First-Quarter Results

Anglogold reported strong first-quarter results on May 15 that marked a big improvement from last year. Adjusted earnings came in at $150 million, up from a loss of $17 million last year.

Ashanti CEO Mark Cutifani noted that the strong numbers were a product of the company trimming its hedges against weak gold prices, saying "Our strategy of reducing the hedge book by almost half over the past year is yielding real results, giving a good kicker to our received gold price."

Estimates Surge

With Ashanti initiating direct exposure to gold, and gold rallying, the analyst community has become more bullish on the company's earnings. The current-year estimate is up 68 cents to $2.41 per share. The next-year estimate is up 61 cents in just the last 30 days to $2.54.

The Chart

Shares of AU have been locked into a big rally for most of the last 6 months, advancing from just above $13 to a recent high above $42. Take a look below.

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