AngloGold Ashanti: 5 Reasons To Be Bullish
SomaBull • 15 Comments
SomaBull • 15 Comments
AngloGold Ashanti: The Restructuring Plan Could Fail
Fri, Feb. 12, 11:49 AM
- Argentina Pres. Macri, who took office in December on a platform of repealing government intervention that had choked investments, announces a tax relief plan for mining companies operating in the country.
- The tax cut adds to Macri’s elimination of currency and capital controls that, along with falling prices, led to a $2B slump in mining exports since 2012.
- Barrick Gold (ABX -0.5%) operates the Veladero mine in Argentina, AngloGold Ashanti (AU -2.5%) owns a 92.5% stake the Cerro Vanguardia mine, and Goldcorp’s (GG +1.8%) assets in the country include a 37.5% stake in the Glencore-controlled Alumbrera (OTCPK:GLCNF, OTCPK:GLNCY) mine and its Cerro Negro mine.; other foreign mining companies with Argentine operations include Yamana Gold (AUY -0.3%) and Silver Standard Resources (SSRI +1.3%).
Thu, Feb. 11, 3:27 PM
- Gold stocks (GDX +7.8%) power higher as April gold futures jumped by $53.20/oz., or +4.5%, to settle at $1,247.80, the highest level since February 2015 and the biggest one-day dollar and percentage gain since September 2013, as investors sought safe-haven assets amid the global equity market rout.
- A growing universe of government bonds with negative yields has helped gold, while a lower U.S. dollar has made it cheaper for buyers in other currencies to purchase gold.
- Investor sentiment “seems to be thawing at the start of 2016, with a focus on gold’s wealth preservation and risk diversification properties,” the World Gold Council says.
- ABX +4.8%, GG +4.4%, AEM +8.7%, SLW +6.3%, KGC +14.2%, NG +6.2%, AU +7.4%, FNV +6.8%, GFI +10.8%, HMY +15.1%, SBGL +16%, IAG +12.3%, GOLD +4%, EGO +14%, AUY +9%, BTG +15.2%, HL +8.8%.
- ETFs: GLD, SLV, NUGT, IAU, AGQ, GGN, PSLV, DUST, SIL, PHYS, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GTU, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, OUNZ, SLVP, DGL, DBS, RING, DGZ, DGLD, PSAU, TGLDX, USV, GEUR, GYEN, UBG, GDXS, GDXX, QGLDX
Thu, Feb. 11, 9:13 AM
- Gainers: DDD +15%. AG +14%. FSM +13%. TRIP +12%. MUX +11%. AUY +11%. SBGL +11%. GFI +10%. AGI +10%. LC +10%. GG +10%. CDE +9%. EGO +9%. KGC +9%. HMY +9%. IAG +9%. EXPE +8%. ABX +8%. NEM +8%. SLW +8%. SSRI 8%. AU 7%. AEM 7%. HL 7%. NG 7%. CSCO 6%. SKX 5%.
- Losers: FLO -18%. INCY -15%. SFL -13%. MYL -13%. BTU -13%. ZNGA -13%. SNOW -11%. IFF -10%. ELMD -9%. AVP -8%. CS -7%. BCS -7%. SUNE -6%. CIG -5%. TWTR -6%.
Tue, Feb. 9, 6:55 PM
- AngloGold Ashanti (NYSE:AU) asks Ghana to redeploy troops to its Obuasi mine after an employee died in an attack by hundreds of illegal miners on the facility last week.
- AU says the military withdrew from Obuasi on Feb. 2 following several attacks at the site during Jan. 30-31, and hundreds of illegal miners stormed the mine days later, killing a staff member.
- AU fired workers and put the mine on limited operations last year as costs soared and the price of bullion fell; it says it plans to keep searching for a partner and find a solution for the mine before the end of the year.
Mon, Feb. 8, 9:49 AM
- AngloGold Ashanti (AU -0.9%) wants to find a solution for its aging Obuasi mine in Ghana by H2 of this year, CEO Srinivasan Venkatakrishnan tells Bloomberg.
- AU cut workers and placed Obuasi on limited operations last year as costs spiraled to more than $1,500/oz., but the CEO says returns can be improved once the government agrees to a tax regime and mining laws.
- AU needs a partner to help access the mine's 5.29M oz. of gold situated in high-grade ore yielding 6.7 grams/ton; Randgold Resources (GOLD +6.8%) in December rejected a proposal to redevelop the mine with AU, saying the project does not meet its investment criteria.
Fri, Feb. 5, 5:38 PM
Wed, Feb. 3, 5:33 PM
- Mining companies that have been hit hard by weakening Chinese demand surged the most in five months today, as a rally in metal prices signaled production cuts are starting to pay off, Bloomberg reports.
- Newmont Mining (NEM +11.3%), Freeport McMoRan (FCX +11.2%) and First Quantum Minerals (OTCPK:FQVLF +16.6%) all gained at least 11% today in leading the Bloomberg Americas Mining Index to a 7% surge and its biggest increase since August.
- Gold futures broke above their 200-day MA for the first time since October, and zinc, copper, aluminum, nickel, lead and tin all gained, helped by the outlook for tighter supplies and a plunge in the dollar.
- In today's trade: ABX +8.8%, GG +10.2%, AEM +5.5%, SLW +8.7%, KGC +10.3%, NG +6.6%, AU +9.6%, FNV +7%, GFI +8.5%, HMY +5.1%, SBGL +6.1%, IAG +9.6%, GOLD +3.6%, EGO +8.3%.
- ETFs: GLD, GDX, NUGT, IAU, GGN, DUST, PHYS, SGOL, UGL, GLDX, DGP, GTU, GLL, JJC, UGLD, DZZ, DBB, SGDM, ASA, OUNZ, DGL, DGZ, RING, DGLD, JJN, PSAU, JJU, TGLDX, CPER, UBG, JJT, BOM, RJZ, BOS, FOIL
Tue, Jan. 26, 9:22 AM
Wed, Jan. 20, 12:45 PM
Fri, Jan. 15, 9:29 AM
Thu, Jan. 14, 5:40 PM
Tue, Jan. 12, 5:37 PM
Thu, Jan. 7, 6:38 PM
- Gold and silver miners are the lone rose growing in this week's stock market garbage heap, as the out-of-favor group responds to the highest gold prices in two months amid the flight to perceived safe havens.
- China’s move to devalue its currency at once stokes worries that growth in the world’s no. 2 economy is more sluggish than feared and that other Asian countries will retaliate with devaluations of their own to keep exports competitive, which could bode well for further gold price upside.
- This week's results so far for top precious metals miners: HMY +53.7%, ABX +18.4%, IAG +14.3%, AEM +14.1%, GFI +13.2%, AUY +12.9%, SBGL +12.8%, AU +11.2%, EGO +10.8%, GG +10.1%, KGC +9.9%, FNV +7.9%, GOLD +6.1%, NEM +4.9%, SLW +4.6%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, PICK, GDXS, GDXX
Dec. 28, 2015, 12:57 PM
- Much like oil/gas firms (hurt by fresh oil price declines), coal, gold, and silver miners are having a rough day. End-of-year tax and fund selling could be playing a role. Comex gold is down a moderate 0.6%, and Comex silver down 3.2%. The S&P is down 0.5%.
- Notable coal decliners: Peabody Energy (BTU -13.6%), Westmoreland Coal (WLB -6.4%), CONSOL Energy (CNX -9%), and Cloud Peak Energy (CLD -4%).
- Notable gold decliners: Goldcorp (GG -3.5%), Barrick Gold (ABX -3.1%), Newmont Mining (NEM -4%), Kinross Gold (KGC -3.8%), Gold Fields (GFI -6.7%), AngloGold Ashanti (AU -5%), Harmony Gold (HMY -6.5%), and Sibanye Gold (SBGL -4.2%).
- Notable silver decliners: Silver Wheaton (SLW -3.8%), Pan American Silver (PAAS -3.6%), First Majestic Silver (AG -6.9%), Tahoe Resources (TAHO -4.9%), and Coeur Mining (CDE -5.8%).
- ETFs: GLD, SLV, IAU, AGQ, PSLV, PHYS, USLV, SIVR, SGOL, ZSL, UGL, DGP, GTU, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, DGZ, DGLD, USV, GEUR, UBG, GYEN, TONS, QGLDX
Dec. 21, 2015, 8:35 AM
- Randgold Resources (NASDAQ:GOLD) says it is walking away from a proposed joint venture with AngloGold Ashanti (NYSE:AU) to redevelop the aging Obuasi gold mine, one of the largest in Africa.
- GOLD says it believes the mine in Ghana no longer satisfies its investment requirements; the redevelopment could have cost up to $1B, according to an estimate when the proposed partnership was announced in September.
- The decision “shows that Randgold remains financially disciplined, but a negative is that medium-term growth options remain lacking," says analysts at Investec.
- Meanwhile, AU must look for another partner to redevelop Obuasi, which the miner says is too large and expensive for it to put back into production by itself.
Dec. 15, 2015, 9:18 AM
AngloGold Ashanti Ltd. is a gold mining and exploration company. Its main business includes gold exploration, mining and production of gold, manufacturing, marketing and selling of gold products. AngloGold Ashanti was founded in 1944 and is headquartered in Johannesburg, South Africa.
Sector: Basic Materials
Country: South Africa
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