Sep. 24, 2013, 11:49 AM
- Randgold Resources (GOLD -0.8%) says its giant Kibali gold project in the Congo has successfully started production ahead of its original year-end target and is still in line with capital forecasts.
- With the earlier start-up, Kibali is expected to exceed its production target of 30K oz. for the rest of this year, and is on track to meet next year's forecast of 550K oz.
- The project is being developed in two phases; the plant's oxide circuit has been commissioned early and is treating oxide ore from the stockpile of more than 1M metric tons already produced by the open pit mine.
- Kibali is a joint venture between GOLD (45%), AngloGold Ashanti (AU, 45%) and a Congolese partner.
Sep. 23, 2013, 5:39 PM
Sep. 16, 2013, 8:49 AM
- Iamgold (IAG) -4.2% premarket after announcing the suspension of excavation activities at the Yatela mine in Mali, citing the drop in gold prices and reduced profit margin.
- Processing of heap leach pads and ore already mined will continue until the end of 2016.
- IAG owns a 40% stake in the mine; AngloGold Ashanti (AU) also owns 40% while the government of Mali has a 20% stake.
Sep. 6, 2013, 2:11 PM
- Some striking South African gold miners returned to work last night after accepting an 8% pay increase from companies including AngloGold (AU +2.6%) and Sibanye Gold (SBGL +3.6%).
- The offer has been accepted by most members of the National Union of Mineworkers, which represents two-thirds of the country's gold miners.
- However, 10 of Harmony Gold’s (HMY -0.6%) 11 mines continue to be affected by the strike, and workers at Gold Fields' (GFI +1.3%) South Deep mine also aren’t yet back at work, but they may report for duty later today.
- AU’s six mines report normal shifts, and two of SBGL’s three sites are operating with the remaining mine expected to resume tonight.
Aug. 30, 2013, 7:58 AM
- South Africa’s four biggest gold producers - AngloGold (AU), Gold Fields (GFI), Harmony Gold (HMY) and Sibanye Gold (SBGL) - are hoarding cash and lining up access to more as they prepare for the first industry-wide strike since 2011, as the National Union of Mineworkers says its members will lay down their tools on Sept. 3.
- The companies seem unwilling to meet the labor union’s terms; “The gold mines are taking action to put their operations into positive cash flow at this gold price," a Johannesburg-based analyst at SBG Securities says. "Hunkering down on wages is part of that strategic plan. They can’t afford it."
Aug. 28, 2013, 7:07 PM
- South Africa's National Union of Mineworkers will give gold producers on Friday 48-hour notice of its intention to strike over deadlocked wage talks, Reuters reports.
- Negotiators on behalf of gold producers said yesterday it had made a final offer to riase basic wages by 6%-6.5%, depending on activity, which the union rejected.
- The companies say steeper increases are unrealistic, as their operations are being hurt by rising costs and falling bullion prices.
- AngloGold (AU), Gold Fields (GFI) and Harmony Gold (HMY) lost 5.1%, 4.6% and 4.9%, respectively.
Aug. 27, 2013, 5:15 PM
- Gold (GLD +0.9%) benefited from today's risk-off investment climate but gold stocks are stocks first and gold plays second (if that), as the miners (GDX -4.2%) finished among the day's worst performers; they also tend to get hit hard by rising oil prices.
- BVN -6.8%, NGD -6.1%, CDE -5.7%, AUQ -5.6%, IAG -5.3%, SLW -4.9%, KGC -4.4%, AUY -4.4%, GG -4.3%, RGLD -4.2%, NEM -3.5%, ABX -3.4%, AU -3.1%, GFI -2.5%, HMY -2%.
- ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, SIL, SLVP, SILJ.
Aug. 22, 2013, 8:28 AM
- South Africa's labor unrest is spreading, as tens of thousands of construction workers prepare to lay down their tools next week and gold mining unions plan to call a strike over wages.
- The National Union of Mineworkers says it will consult members in the coming days to discuss strike action; NUM represents ~64% of ~140K South African gold miners, where major operators include AngloGold (AU), Gold Fields (GFI), Harmony (HMY) and Sibanye Gold (SBGL).
- A construction stoppage would affect major companies such as Wilson Bayly Holmes Ovcon, Aveng (AVEPY.PK) and Group Five.
Aug. 21, 2013, 8:49 AM
- AngloGold Ashanti (AU) -2.1% premarket after announcing it reached agreement with its two banking syndicates to temporarily relax the financial covenant on its revolving credit facilities.
- AU calls it "purely a proactive step" providing protection if needed against volatile market and operating conditions.
Aug. 19, 2013, 10:35 AM
- AngloGold (AU -5%) shares sink after a National Union of Mineworkers spokesman tells Bloomberg the wage-offer gap between gold producers and labor groups in South Africa appears too wide to resolve, saying "I smell a strike in the air."
- Wage negotiations stalled July 24 after the unions rejected an offer of a 5% pay increase and a housing-related allowance.
- GFI -1.7%, HMY -0.7%, SBGL -3.8%.
Aug. 19, 2013, 9:14 AM
Aug. 13, 2013, 9:43 AM
- The recent sharp slide in AngloGold (AU -1.8%) bonds reignites calls from investors for the miner to spin off burdensome South African assets.
- Yields on AU’s dollar debt due July 2020 surged 117 bps since being sold on July 25 to a record 9.59% on Aug. 7, while the average yield on dollar bonds of emerging market metals and mining companies rose 18 bps.
- AU hasn’t heeded calls to spin off assets in South Africa, which is beset with strikes and higher costs; Gold Fields (GFI -4.7%) put most of its South African mines in a new company in February, a strategy that activist shareholder John Paulson has said AU should copy.
Aug. 8, 2013, 9:35 AM
- South African miners AngloGold Ashanti (AU +0.8%), Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%) are cut to Sell from Hold at HSBC, which says lower gold prices are cutting margins.
- Foreseeing a 12-month period of "momentous pressure" on the industry, the firm expects "extremely tough operating conditions given the current tensions between management and labor, as wage negotiations enter dispute, and the negative implications of potential restructuring on industry jobs."
- Gold Fields (GFI +0.5%), which spun off SBGL earlier this year, is HSBC’s preferred South African gold miner with a Hold rating.
Aug. 7, 2013, 3:51 AM
- AngloGold Ashanti (AU): Q2 adjusted headline loss $135M vs a profit of $113M a year earlier.
- Revenues fall to $1.30B from $1.68B.
- Takes $3.2B charge for special items, including $2.98B for impairment of goodwill, tangible and intangible assets.
- Pretax loss $3.08B vs profit of $495M.
- Diluted loss per share $5.75.
- Gold production 935,000 oz, in-line with guidance and up 4% from Q1; total cash cost $898/oz, below expectations.
- Cuts 2013 capex budget to $1.95B from up to $2.1B.
- To "more than halve" corporate costs in 2014 and targets saving of $482M for the year. To cut 40% of 2,000 corporate level jobs over the next 18 months, will reduce exploration and evaluation programs to three core regions and pull out of over a dozen countries.
- Halts dividend payment, due to volatile environment. Will review policy at year-end. Will also revert to bi-annual dividend schedule. (PR)
Jul. 26, 2013, 12:18 PMGold is falling and taking gold mining stocks with it, but South Africa’s miners have it worse: HMY -5.8%, SBGL -5.6%, AU -3.4%, GFI -1.9%. The fractious nature of labor relations and the potential for another violent incident is the biggest of many problems, Barclays writes, and getting it right is critical for the country; the sector accounts for 5% of real value added directly and 18% indirectly. | Comment!
Jul. 15, 2013, 11:45 AMAngloGold Ashanti (AU -3.1%) slips after revising down its annual guidance to 4-4.1Moz from 4.1-4.4Moz citing the company's strategy "to remove marginal ounces from its production profile [and] prevailing gold prices." AU also says it expects to book a charge of $2.6B in Q2 on "impairments and revaluation to net realizable value of its mining assets." Q2 production should come in at 935Koz, in line with guidance. (PR) | Comment!
AU vs. ETF Alternatives
Other News & PR