Oct. 24, 2014, 4:48 AM
- Mali has confirmed its first case of Ebola, becoming the sixth West African country to report a case of the virus.
- The patient, a 2-year-old girl who had come from neighboring Guinea, was brought to a hospital in the Malian town of Kayes.
- Mali is Africa’s third-largest gold producer.
- Related gold stocks: GOLD -2.3% premarket; AU
- Ebola Small-cap Index: HEB, TKMR, NLNK, NNVC, INO, OTCQB:GOVX, SRPT, CMRX, PLX, NSPH, BCRX, LAKE, APT, VSR, SMED.
Oct. 9, 2014, 3:58 PM
- The price of gold may be rising, but gold mining stocks are getting hammered today; after all, "they are still stocks," Barron's Johanna Bennett writes.
- Gold prices rallied today to $1,234/oz., their highest level since Sept. 23, a day after the dovish minutes from the Fed’s September policy meeting excited gold bugs, but shares of the mining companies are falling along with the broader market selloff.
- Among the top mining names: IAG -6.9%, KGC -6.2%, SLW -5.9%, NGD -5.5%, AU -4.9%, GG -4.7%, ABX -3.9%, AUY -3.9%, GFI -2.8%, BTG -2.7%, RGLD -2.6%, AGI -2.1%, GOLD -1.8%.
- ETFs: GLD, SLV, GDX, GDXJ, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, SGDM, PSAU
Oct. 8, 2014, 6:20 PM
- No investment sector benefited more today from the dovish take on the FOMC meeting minutes than precious metals miners, as the Fed's worries over weakening world economies and a strong U.S. dollar offer hope for gold bulls that the Fed will not rush to raise interest rates.
- Gold mining ETFs surged past those linked to the commodity price, with GDX +7.4% and GDXJ +9.6% while GLD +1%; among leveraged ETFs, NUGT +21.5%.
- Among major miners: BTG +14.4%, AGI +13.6%, GG +8.6%, RGLD +8.6%, SLW +8%, NGD +7.6%, IAG +7.5%, GFI +7%, AUY +6.9%, ABX +5.2%, AU +4.8%, KGC +3.5%.
- Other ETFs: SLV, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, GLTR, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, DBP, SGDM, WITE, PSAU
Oct. 6, 2014, 2:45 PM
- Gold prices bounce off 15-month lows to reclaim $1,200/oz. as the dollar rally pauses, helping strengthen shares of precious metals miners: AU +4.4%, GFI +3%, IAG +1.9%, BTG +3%, GG +2.2%, NGD +1.5%, KGC +1.6%, AGI +1.6%, RGLD +1%, SLW +2.1%.
- Sterne Agee analysts Michael Dudas and Satyadeep Jain foresee gold and silver prices trending higher, with gold averaging $1,400/oz. in 2015 and $1,450 in 2016 and silver averaging $19 next year and $21 in 2016, as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
- With investor sentiment still skeptical, Sterne thinks any supportive macro news flow could provide fuel for a rally; the firm rate Newmont Mining (NEM +1.5%), Agnico-Eagle Mines (AEM +2.4%), Coeur Mining (CDE +1.3%) and Gold Resource (GORO +0.2%) as Buys, with Barrick Gold (ABX +0.5%), Hecla Mining (HL +4.3%) and Pan American Silver (PAAS +1.5%) rated Neutral.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, OUNZ, DGLD, AGOL, DBP, TBAR, USV, UBG, JJP, GLDE, BAR, GYEN, GEUR, RGRP, BARS, GGBP, BLNG
Oct. 3, 2014, 4:13 AM
- Gold miners have the greatest exposure to the Ebola outbreak, Deutsche Bank says. Iron ore and aluminum miners, and oil drillers also have some exposure.
- Randgold's (NASDAQ:GOLD) exposure is most acute, with 100% of its NPV in the affected region.
- AngloGold (NYSE:AU) has 53% NPV exposure.
- ArcelorMittal (NYSE:MT) has some exposure through its iron-ore mine in Liberia (6.5% of its output).
- BHP Billiton (NYSE:BHP) and Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) aren't exposed to the region.
- Related: Exxon delaying some west Africa drilling work because of Ebola (Oct. 2)
- Related: ArcelorMittal contractor moving workers out of Liberia (Aug. 8)
Sep. 15, 2014, 8:32 AM
- AngloGold Ashanti (NYSE:AU) +6.1% premarket after saying it is dropping its plan to spin off its global operations into a new London-listed company and seek a $2.1B rights issue.
- The plan met strong resistance from a number of shareholders, including John Paulson, whose hedge fund holds a 6.6% stake in the company.
Sep. 12, 2014, 11:27 AM
- South Africa’s central bank pressed AngloGold Ashanti (AU +2.2%) to increase the size of a planned share sale that’s opposed by hedge fund manager John Paulson, Bloomberg reports.
- AU is said to have initially sought to raise just over $1B from investors to strengthen its balance sheet, but that was increased to $2.1B to satisfy the concerns of the South African Reserve Bank over the split of the company into separate entities housing South African and international operations.
- The bank’s insistence may help explain why AU is moving forward with a plan that saw its shares fall sharply and drew criticism from investors including Paulson.
Sep. 11, 2014, 11:39 AM
- John Paulson, whose hedge fund holds a 6.6% stake in AngloGold Ashanti (AU -1%), says he opposes the miner’s plan to raise $2.1B from investors while spinning off non-South African assets because it will destroy shareholder value.
- AU announced yesterday it will create a new company holding its foreign assets; it plans to retain 65% of the new company, with the remaining equity distributed to shareholders.
- Paulson has said AU could unlock value if it split into a high-growth international business and a mature gold producer in South Africa, but "the way this restructuring is being implemented, it’s destroying value because of dilution."
Sep. 10, 2014, 12:47 PM
Sep. 10, 2014, 9:15 AM
Sep. 10, 2014, 7:35 AM
- AngloGold Ashanti (NYSE:AU) -10.4% premarket after announcing plans to spin off its international mining operations into a new entity listed in London and to raise $2.1B in capital.
- AU will retain a 65% stake in the new company, which will have 14 gold mines in the Americas, Africa and Australia that last year generated ~$4B in revenue.
- The new company, which would be based in the U.K., would seek to list its shares on the London Stock Exchange and to have secondary listings in Johannesburg and New York.
- AU says the separation would simplify the structure of its businesses, allow their management teams to be more economically competitive, and also allow the companies to be more appropriately valued by investors.
- The move follows BHP's recent decision to split some of its less profitable assets into a new Australian-listed company; Gold Fields also split its South African assets into a new company, Sibanye Gold, in 2013.
Aug. 11, 2014, 12:59 PM
- AngloGold Ashanti (AU +1.5%) CEO Srinivasan Venkatakrishnan said he would press ahead with a plan to cut operating costs by $500M by year's end through mine closures and layoffs even if it took an immediate toll on earnings.
- AU isn't currently looking for merger or acquisition opportunities, the CEO said after reporting a narrower Q2 net loss, calling the consolidation drive in the sector a potential source of "distraction... Our focus isn't to rush into M&A but to get the operations on a better footing."
- Also, production at the two South African mines where it had suspended work after an earthquake last week is set to resume today after losing output of ~20K oz. of gold.
Aug. 11, 2014, 8:24 AM
Aug. 11, 2014, 7:56 AM
- AngloGold Ashanti (NYSE:AU) reports a Q2 loss of $14M, narrowing from a $3.08B loss in the year-ago quarter.
- Normalized adjusted Q2 earnings of US$0.19/share, compared with EPS of US$0.02 in the year-ago quarter, with revenues inching higher to $1.36B from $1.3B a year earlier.
- Q2 gold output rose 17% Y/Y to 1.1M oz., with higher production at its South African, other African and Australian mines more than offsetting a decline at its operations in Brazil; cash costs were $836/oz. vs. $898/oz. in Q2 2013.
- South Africa region posted production at 319K oz., up 4% Y/Y, at an all-in sustaining cost of $1,064/oz, down 12%; international operations posted a 24% rise in gold production to 779K oz. at an all-in sustaining cost of $1,033/oz, down 19% Y/Y.
- AU, which says it plans to grow production this year for the first time in almost a decade, foresees current quarter production of 1.06M-1.09M oz. at a cash cost of $850-$890/oz.
Aug. 4, 2014, 12:59 PM
- The Tanzanian government says it will invest at least $1.2B to revamp its ailing state power utility, as the country tries to guarantee reliable power to domestic and industrial consumers.
- It expects the reforms to help the country attract enough investments to diversify power sources and boost generation capacity to at least 10K MW over the next 10 years, from the current 1,600 MW.
- Around half of the projected new power capacity will be generated from natural-gas fired plants, as a flurry of natural gas discoveries off the southern coast has made the country a hotspot for natural gas exploration, attracting Exxon (NYSE:XOM), Cnooc (NYSE:CEO), Rosneft (OTC:RNFTF) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY).
- Gold mining companies such as Africa Barrick Gold (OTC:ABGLF) and AngloGold Ashanti (NYSE:AU) remain some of Tanzania's largest power consumers.
Aug. 1, 2014, 10:41 AM
- Hinting at more mine sales ahead, AngloGold Ashanti (AU -0.2%) execs say the biggest miners will put more assets on the block as they seek to bolster margins ahead of a forecast slump in prices.
- "Operations that don’t really give you much margin at those prices, really don’t belong in your portfolio, so you will see that continue," says AngloGold VP Graham Ehm; of his own company, Ehm says operations remain under review for potential sales or spinouts, with gold prices more likely to decline than to advance beyond $1,400/oz.
- With operations across 10 countries, AU may consider potential sales of assets, including Obuasi in Ghana, Sadiola in Mali or Colombia’s La Colosa, analysts say.
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