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  • World's Top 6 Gold Producers: 3rd Place, AngloGold Ashanti [View article]
    There could be several factors for this. However, AngloGold Ashanti faces labor unrest at its South African mines, with a miner stabbed at Mponeng mine on April 20, apparently in a dispute between workers that may be linked to a wider rivalry between unions.

    Union demands for wage hikes of up to 60% set the stage for further disruptions and unrest at South African mines, which may add to the risk discount in AngloGold Ashanti's share price. There has been labor strikes in the recent past and the company is getting challenged.
    Jul 8, 2013. 03:02 PM | Likes Like |Link to Comment
  • World's Top 6 Gold Producers: 3rd Place, AngloGold Ashanti [View article]
    Thank you joabe17. The preferred shares carry the right to receive dividends equivalent to the profits (net of royalty, ongoing capital expenditure and taxation) from operations in the area. However, 2012 adjusted profit underperformed at -29% to $924M, EPS falling to $2.39 from $3.36.

    Earnings hurt by strikes at its South African mines and subsequent production cuts affected the overall profit of the company but I believe it is past behind now and it shouldn't affect its preferred shares in the long term. Therefore, Anglogold should renew with its past earnings level.
    Apr 5, 2013. 10:28 AM | Likes Like |Link to Comment
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