AngloGold Ashanti LimitedNYSE
AngloGold Ashanti: 5 Reasons To Be Bullish
SomaBull • 15 Comments
SomaBull • 15 Comments
Mon, Nov. 28, 9:57 AM
- South Africa's mining industry is at risk of collapse due to political unrest and labor instability which have negatively impacted investment into the country, Sibanye Gold (SBGL +1.2%) CEO Neal Froneman tells Reuters.
- "We sit on a knife edge as an industry. It could well collapse, and that means it's unlikely that Africa's potential will be realized because resources will be sterilized," the CEO says at the Investing in African Mining seminar in London.
- South Africa's mining sector, which accounts for ~7% of GDP, opposes the introduction of regulations and laws that could see the powers of the mining minister increase and black ownership commitments of companies rise.
- Ratings agencies Fitch and Moody's on Friday kept their ratings on South Africa unchanged but Fitch cut its outlook for the economy to negative, citing concerns over political risk and low growth.
- Other relevant tickers include GFI, GOLD, AU, HMY, OTCPK:AAUKF, OTCPK:AAUKY.
Mon, Nov. 14, 9:16 AM
- AngloGold Ashanti (NYSE:AU) +3.3% premarket after reporting Q3 results, which included a 36% Y/Y increase in EBITDA to $395M from $291M in the year-ago quarter, while free cash flow surged to $161M from an outflow of $50M the year before.
- AU says Q3 production totaled 900K oz., compared to 974K oz. in last year's Q3, which had included a combined 32K oz. from Cripple Creek & Victor and Obuasi, which have been sold and idled respectively; all-in sustaining costs rose 14% to $1,071/oz.
- Q3 output from South Africa fell 7% Y/Y to 235K oz., mainly due to lower average recovered ore grades from underground and stoppages following three fatalities in July; international production fell 5% Y/Y to 665K oz., mainly due to lower ore grades as planned, at both Tropicana and Geita, as well as delays in accessing high-grade ore at the Brazil operation.
- “Given the unpredictable nature of safety stoppages, I think we’ll take a more prudent or punitive stance internally on a go-forward projections for the production from South Africa, starting from next year,” CEO Srinivasan Venkatakrishnan says.
- AU says it tentatively expects to produce 3.6M-3.65M oz. this year at an all-in sustaining cost of $980-$1,010/oz.
Mon, Nov. 14, 5:10 AM
Wed, Nov. 9, 10:51 AM
- Gold has pared early gains approaching 5%, now just +1% at $1,287.70/oz., with silver +1.5% at $18.64/oz., but precious metals mining stocks continue to enjoy strong gains.
- “The market is telling you that the mining sector is the biggest beneficiary of a Trump election, particularly precious metals,” says Investec Securities analyst Jeremy Wrathall.
- Among precious metals miners today: ABX +3.5%, NEM +4.3%, GG +5.6%, AEM +4.2%, SLW +3.4%, KGC +4.2%, RGLD +5.1%, EGO +3.8%, NG +5.8%, GOLD +5%, GFI +5.5%, AU +4.5%, HMY +5.9%, SBGL +7.1%, FNV +3.8%, AUY +5.3%, IAG +4.6%, BTG +6.3%, NGD +7.6%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, GGN, DUST, PSLV, SIL, PHYS, USLV, SIVR, SGOL, ZSL, GLDX, UGL, DGP, GTU, UGLD, GLL, DZZ, SLVO, SGDM, GLDI, ASA, DSLV, OUNZ, SLVP, DGL, RING, DBS, DGZ, DGLD, PSAU, TGLDX, GYEN, USV, GEUR, UBG, GDXX, GDXS
Thu, Oct. 13, 11:35 AM
- AngloGold Ashanti’s (AU +0.9%) Obuasi mine in Ghana likely will remain under the control of illegal miners because the government is reluctant to alienate thousands of potential voters before elections, the Kofi Annan Center says.
- Ghana’s Mineral Commission last week gave the illegal miners a deadline of Oct. 10 to vacate the site, but the miners have failed to heed the order, and the Annan Center says they are unlikely to move ahead of parliamentary and presidential elections scheduled for Dec. 7.
- There is no political will to remove the miners “given the dynamics of the tight election,” an Annan director says.
Tue, Oct. 4, 2:20 PM
- Precious metals miners are slammed as gold prices dip well below $1,300/oz. to settle at $1,269.70, its lowest since the U.K.'s Brexit vote in June, as upbeat U.S. manufacturing data yesterday has stoked expectations of higher interest rates.
- Gold is “falling off the cliff,” says Naeem Aslam, chief market analyst at ThinkMarkets. “Traders are buying the equity market with both hands, especially over in the U.K.” as the British pound declines.
- Among precious metals miners today: ABX -9.2%, KGC -10.4%, GG -7.8%, NEM -8.7%, EGO -7.4%, RGLD -7.8%, AEM -8.9%, NG -9.7%, SLW -9.1%, FNV -5.6%, IAG -11.2%, GOLD -8.1%, AU -9.3%, GFI -6.4%, SBGL -8.1%, HMY -9.9%, AUY -11.6%, BTG -9.3%, NGD -6.6%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, PSAU, SGDJ, TGLDX, GDJJ, GDXX, GDXS
Wed, Sep. 21, 5:55 PM
- Newmont Mining (NYSE:NEM) was today's best-performing stock in the S&P 500 and precious metals miners gained across the board, enjoying a big boost from the Fed’s decision to keep interest rates unchanged.
- NEM even outperformed the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) - +7.5% vs. +7% - and Credit Suisse analysts say business in looking up for the miner, as NEM continues to meet or beat cost and production targets, as well as strengthen its portfolio.
- The firm adds that NEM believes shareholders appreciate its predictability, discipline and defining growth based on free cash flow rather than production.
- Also today: ABX +8.6%, GG +7%, AEM +7.1%, EGO +5.7%, KGC +7.6%, SLW +7.8%, FNV +4.8%, RGLD +9.6%, IAG +7.9%, GOLD +4.7%, AU +10.4%, GFI +9%, SBGL +9.5%, HMY +11.8%, AUY +7.6%, BTG +6.3%, NG +8.1%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXX, GDXS
Tue, Sep. 6, 5:35 PM
Thu, Sep. 1, 3:44 PM
- The previously hot gold miners had a tough time of it in August, even slipping into bear market territory yesterday. But the names are hot again to start off September, with the GDX higher by 3.5% today. Gold is up 0.4% to $1,317 per ounce.
- S&P, meanwhile, is mulling the possibility of dividend hikes, noting shareholder pressure is likely to lead to higher payouts or share buybacks should gold prices remain near or above current levels. Newmont Mining (NEM +2.6%) has promised to revisit its capital return strategy, Gold Fields (GFI +5.3%) significantly hiked its interim dividend, and AngloGold Ashanti (AU +2.3%) is considering resuming dividends in 2017 after a three-year holiday.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, JNUG, GLDX, JDST, SGDM, ASA, RING, PSAU, SGDJ, TGLDX, GDXX, GDJJ, GDXS, GDJS
Thu, Aug. 25, 5:33 PM
Mon, Aug. 15, 9:26 AM
Mon, Aug. 15, 9:19 AM
- AngloGold Ashanti (NYSE:AU) says it will consider resuming dividend payments next year after last paying a dividend in H1 2013, as higher bullion prices, weaker currencies in countries where it operates and lower interest payments boost free cash flow
- AU's board will meet to discuss what to do with excess cash toward the end of this year and announce any new policy early in 2017, CEO Srinivasan Venkatakrishnan says.
- The comments came as AU reported adjusted H1 earnings of $159M, more than double vs. the same period last year, with gold production of 1.745M oz., in line with AU's full-year guidance range of 3.6M-3.8M oz., and all-in sustaining costs of $911/oz., a $13 Y/Y improvement.
- AU says cash flow tripled to $108M at the end of H1 while net debt fell 32% to $2.1B.
- AU -3.2% premarket.
Fri, Aug. 12, 5:37 PM
Tue, Jul. 26, 12:52 PM
- Barrick Gold (ABX +2.6%) is considering a sale of its 64% stake in African unit Acacia Mining and has approached several South African miners, Reuters reports.
- ABX has reached out to South African miners Harmony Gold (HMY +4.4%), Sibanye Gold (SBGL +5.3%), AngloGold Ashanti (AU +2.6%), Randgold Resources (GOLD +1.3%) and Gold Fields (GFI +5.4%), as well as some Australian and North American miners, according to the report.
- Acacia owns three producing gold mines in Tanzania, as well as exploration projects in the country and other parts of Africa.
Fri, Jul. 22, 7:59 AM
- AngloGold Ashanti (NYSE:AU) says it expects to swing to a net profit in H1, thanks to higher gold prices, cost controls and weaker local currencies that have lowered its operating costs on a dollar-denominated basis.
- In a trading update, AU says it expects to report H1 headline earnings, which strips out exceptional items, of $87M-$99M vs. a $128M loss in the year-ago period.
- AU says its net earnings will benefit from a higher gold price, which rose 1.5% Y/Y to $1,222/oz. in H1, and weaker operating currencies in South Africa, Brazil, Australia and Argentina; it also was helped by continuing to control costs across its portfolio of 17 operations in nine countries.
- The combination helped offset a 7.1% Y/Y decline in H1 gold production to 1.75M oz.
Thu, Jul. 14, 5:36 PM