AngloGold Ashanti (AU) to Boost Portfolio by Investing in G2
AngloGold Ashanti plc AU has announced that it intends to subscribe 24,500,000 common shares of G2 Goldfields Inc. for C$0.90 per share (USD $0.662). The total consideration is set at C$22,050,000 (USD $16,539,000). This move will provide AngloGold Ashanti with a solid position in one of the world’s key gold provinces with great potential for discoveries.
The subscription is expected to close in January 2024. AngloGold Ashanti will own 11.7% of G2's issued and outstanding shares after completion. The deal is subject to the execution of definitive documentation and satisfaction of customary conditions.
G2 is now prospecting in Guyana, which is home to the Guiana Shield, one of the world's most promising gold provinces. The OKO Main Zone and Ghanie resources are part of G2's main OKO project. In April 2022, the business published an Indicated Mineral Resource estimate of 220,000 oz Au (793,000 tons grading 8.63 g/t Au) and an Inferred Mineral Resource estimate of 974,000 oz Au (3,274,000 tons grading 9.25 g/t Au) for the OKO Main Zone.
AU will be granted pre-emptive and top-up rights for future G2 security issuances as part of the subscription.
AngloGold Ashanti reported a 3% increase in gold production in the third quarter of 2023 from the second quarter. The upside was driven by higher ore tons processed, partly offset by lower overall recovered grades.
Price Performance
AU shares have lost 3% in the past year against the industry’s growth of 9.3%.
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Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. AXTA, Universal Stainless & Alloy Products, Inc. USAP and Alamos Gold Inc. AGI. AXTA sports a Zacks Rank #1 (Strong Buy), and USAP and AGI carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Shares of AXTA have gained 31% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 137% last year.
The consensus estimate for Alamos’ current fiscal year’s earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in the last four quarters, the average earnings surprise being 25.6%. The company’s shares have gained 46% in the past year.
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AngloGold Ashanti PLC (AU) : Free Stock Analysis Report
Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
