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AngloGold Ashanti Limited

5/23/2013, 10:27 AM ET

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Tuesday, May 21, 2:17 PM South Africa's rand falls to its lowest level in four years as clashes between mine owners and workers erupt again today. Government "heavy-handedness" with mining companies has created a "major negative" for investors both inside and outside mining, as it reduces companies’ abilities to set their balance sheets and control their own destinies, Greenbriar Partners says. AU -3.3%, GFI -3%, HMY -2.6%. 5 Comments [Commodities, Global & FX]
Monday, May 20, 12:57 PM As precious metals prices turn around, share prices of gold (GDX +4.7%) and silver miners (SIL +3.1%) surge: ABX +5.9%, GG +4.5%, KGC +6.4%, NEM +4.7%, SLW +4%. Even South African producers turn mixed, despite the call from the country's mine workers union for big pay increases: AU -0.8%, GFI +1.5%, HMY -0.5%. 2 Comments [Commodities, On the Move]
Monday, May 20, 8:12 AM Shares of South African miners sink as the country's mine workers union calls for a 60% pay increase on gold and coal producers. The union says it is seeking an entry-level minimum monthly wage of 7K rand ($750) for surface workers and 8K rand for underground workers vs. respective current minimum wages of 4.7K and 5K rand. AU -3.7%, GFI -3.4%, HMY -1.9% premarket. 2 Comments [Commodities, Global & FX]
Friday, May 17, 3:22 PM Gold miners (GDX -3.2%) take another beating as gold continues to lose its allure amid disclosures of reduced bets by hedge funds, a World Gold Council report showing gold demand at a three-year low, and a surging dollar. For the miners, it's an ugly world of lower production, higher costs and falling prices. At least nine miners hit 52-week lows: NEM -3%, GG -2.7%, AUY -4.8%, HMY -6.3%, AU -2.5%, BVN -1.1%, ANV -7.4%, NG -2.7%, GSS -5.8%. 18 Comments [Commodities, On the Move]
Friday, May 17, 7:58 AM The head of a major South African mining union threatens to bring the country's economy "to a standstill" and demands a meeting with President Zuma, ramping up the rhetoric in a long and heated conflict between labor and the government. But a strike seems averted for at least another day, as top platinum producer Amplats (AGPPY.PK) says employees reported for today's shifts as normal. Comment! [Commodities, Global & FX]
Wednesday, May 15, 6:06 PM John Paulson, whose hedge fund is the single biggest owner of the SPDR Gold Trust (GLD), maintained a 21.8M-share position even as the value of its holdings fell ~$165M in the latest quarter. But all that remains of his Barrick Gold (ABX) holdings is 36K call options vs. 915K shares at the end of 2012. Other positions in miners AU, NG, AEM, IAG and ANV were unchanged or modestly changed. 7 Comments [Commodities]
Monday, May 13, 8:44 AM More on AngloGold's (AU) Q1 results: Gold miners must prepare for a lower gold price environment below $1,500/oz. and perhaps even as low as $1,300 in the coming quarters, new CEO Srinivasan Venkatakrishnan says. Hopes to complete the sale of its Navachab mine in Namibia by year-end and plans to identify at least one other mine to sell, but no further details provided. Shares -1.7% premarket. Comment! [Commodities, Earnings]
Monday, May 13, 8:19 AM AngloGold Ashanti (AU) reports Q1 profit attributable to equity shareholders totaled $239M, down from $581M in the year-ago period. Production was 899K oz. vs. 859K oz. in Q4 2012 and 981K oz. a year ago. Capex totaled $512M, up from $398M. Says it will look at cutting exploration costs and consider some asset sales in the coming months. AU -1.9% premarket. Comment! [Commodities, Earnings]
Thursday, May 9, 6:55 PM The plunge in gold prices significantly raises the stakes in talks between South Africa's gold mine operators and mine workers, set to kick off Friday when the country's mineworkers union will propose a double-digit pay raise. South African producers including Gold Fields (GFI), Harmony Gold (HMY) and AngloGold (AU) have already warned that cuts and a slowdown in exploration are on the way. Comment! [Commodities, Global & FX]
Wednesday, May 8, 12:42 PM Investors appear to like AngloGold's (AU +3.2%) promotion of longtime finance chief Srinivasan Venkatakrishnan to CEO, effective immediately. Venkat offers a "seamless” transition but faces challenges in managing the difficult relationship between mine workers, unions, the ANC and economic reality. Comment! [Commodities, On the Move]
Tuesday, May 7, 2:10 PM Some big moves in today’s options trading make it appear that investors are banking on another drop in the gold miners ETF (GDX -3%), already -36% YTD. Volume in GDX options is heaviest in the June $27 strike puts, where nearly 40K puts have traded vs. open interest of ~16K contracts. Big miners are broadly lower: HMY -5.5%, GFI -5.2%, AU -3.2%, ABX -3.1%, EGO -2.8%, NEM -2.2%, GG -2%. 3 Comments [Commodities, On the Move]
Friday, May 3, 2:13 PM As cheaper gold makes South African mines unprofitable to operate, Goldman Sachs slaps Sell ratings on AngloGold (AU -1.2%) and Sibanye (SBGL -5.1%) due to their high exposure to the country. The firm also thinks attempts to reduce costs by reducing labor or closing mines could be met with strikes or government interference. Goldman's best rating - Neutral - is saved for Randgold (GOLD -0.2%). Comment! [Commodities, Quick Ideas, On the Move]
Monday, April 29, 11:39 AM Gold miners (GDX) have been smacked by plunging gold prices, but Citigroup and HSBC think they have further to fall. Citi worries about AngloGold (AU) because negative free cash flow would hit its "already stretched balance sheet," but Harmony Gold (HMY) has the balance sheet to weather similar problems; Gold Fields (GFI) is its sector favorite. HSBC cuts GFI, Agnico Eagle (AEM) and many others. 1 Comment [Commodities, Quick Ideas]
Wednesday, April 24, 12:20 PM Investors in gold miners (GDX +3.5%) feel good - at least for a day - after Barrick Gold's (ABX +3.1%) Q1 efforts to cut costs show some success. ABX reduced its 2013 capex forecast to $5.2B-$5.7B, and said all-in sustaining costs are seen at $950-$1,050/oz., vs. a Feb. 14 forecast of $1,000-$1,100. HMY +8.4%, GFI +5.1%, GG +3.7%, NEM +3.6%, EGO +3.2%, AU +3%. 3 Comments [Commodities, On the Move]
Thursday, April 18, 10:17 AM At current prices, 15% of global gold miners probably are now underwater, according to Nomura's Tyler Broda, who also predicts gold could fall to as low as $1,000/oz. this year. Companies relying on a single asset and those in Africa, already struggling with deteriorating geopolitical risk, will find it more difficult to convince banks to fund projects, Broda says. 17 Comments [Commodities, Global & FX]
Wednesday, April 17, 3:15 PM One of the stranger outcomes of gold's collapse is to make gold miners look more expensive, which Nomura says means more downside for the miners. "Lower levels of investment demand have the equilibrium point for the gold price at still lower levels. [If so], the equities should still have further to retrace." It's another down day for South African miners: HMY -5.6%, GOLD -4.5%, AU -4%, GFI -1.2%. (also) 6 Comments [Commodities, On the Move]