AngloGold Ashanti (AU) Q3 Gold Production Rises Sequentially
AngloGold Ashanti plc. AU announced a 3% increase in gold production in the third quarter of 2023 compared with the second quarter of the year. The upside was driven by higher ore tons processed, partly offset by lower overall recovered grades.
Gold production came in at 673,000 ounces in the third quarter of 2023, up from 652,000 ounces in the second quarter of 2023. Strong performances from Iduapriem, Siguiri, Kibali, MSG, Geita and Tropicana were partially offset by lower production performances at Obuasi, AGA Mineração, Cerro Vanguardia and Sunrise Dam.
To reflect the solid gold performance in the quarter and further expectations of improvement, the company reaffirmed its annual production guidance for 2023. It anticipates production to be within 2,450,000-2,610,000 ounces for 2023.
Other Updates
In the quarter, AU closed the previously announced sale of 50% indirect interest in its Gramalote project to B2Gold BTG. The Gramalote Project, located in the Department of Antioquia, Colombia has so far been advanced under a joint venture between B2Gold and AngloGold with each holding 50%.
The company also made a significant transition and completed the migration of its primary listing from the Johannesburg Stock Exchange to the New York Stock Exchange on Sep 25, 2023.
The company has been working on decarbonization projects at Geita and has started work on a renewable energy project at Tropicana.
Price Performance
Shares of AngloGold Ashanti have lost 11.8% in the past year against the industry’s growth of 1.7%.
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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 Carpenter Technology Corporation CRS and Universal Stainless & Alloy Products, Inc. USAP. CRS sports a Zacks Rank #1 (Strong Buy) and USAP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares have gained 66% year to date.
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 pinned at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 87% in the last year.
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