19.10 0.00 (0.00%)
After hours: 4:19PM EDT
|Bid||19.10 x 800|
|Ask||19.10 x 900|
|Day's Range||18.55 - 19.74|
|52 Week Range||8.19 - 23.85|
|Beta (3Y Monthly)||-0.35|
|PE Ratio (TTM)||37.52|
|Forward Dividend & Yield||0.07 (0.35%)|
|1y Target Est||21.24|
Since we are expecting "insurance cuts", where a slowdown are imminent but the economy isn't in a recession, the benchmark S&P 500 is still very much poised to come up with healthy gains in the near term.
The Zacks Analyst Blog Highlights: Alamos Gold, Franco-Nevada, Kirkland Lake Gold and AngloGold Ashanti
The Zacks Analyst Blog Highlights: U.S. Silica, Chevron, AngloGold Ashanti, Kinross Gold and Barrick Gold
Coordinated drone strikes on key Saudi oil facilities sends oil prices higher. Here's a rundown on the big winners and losers from the oil price rally.
AngloGold Ashanti Ltd has entered into an agreement with B2Gold at its Gramalote project in Colombia that will see its Canadian joint venture partner raise its stake and assume management of the project. AngloGold Ashanti said as part of the agreement B2Gold will fund investment and exploration to the value of $13.9 million at the project next year in return for taking its stake up to 50% and will assume management of the project in January 2020. Ashanti, which also has operations in South Africa, holding the remaining 51.7%.
With an overwhelming majority of observers seeing an imminent rate cut on August's soft employment report, certain sectors stand to gain, while some will suffer. Take a look -
(Bloomberg) -- AngloGold Ashanti Ltd.’s last South African mine is luring potential buyers as the rally in gold boosts profitability. That interest doesn’t mean Chief Executive Officer Kelvin Dushnisky will achieve his target price.AngloGold wants about $500 million for Mponeng and a number of smaller South African assets, according to people familiar with the matter, who asked not to be identified as the issue is private. Harmony Gold Mining Co. and Sibanye Gold Ltd. have submitted formal proposals, the people said. The discussions are at an early stage and it’s uncertain that they’ll lead to a deal, they said.Any acquirer faces additional costs as they bankroll a stake in the mine for employees and nearby communities to comply with a law seeking to address inequities stemming from apartheid. Mponeng’s valuation is also being squeezed by geological challenges: it’s the world’s deepest mine, and requires investment of $1 billion to extend its life beyond eight years, according to JPMorgan Chase & Co.“You have to ask yourself, why would you buy a mine 4 kilometers deep?” said Peter Major, an analyst at Mergence Corporate Solutions in Cape Town. “It’s a huge risk. Those that are interested will want to get a discount.”“We remain committed to streamlining our portfolio -- guided by our capital allocation priorities -- but we don’t comment on deals in process,” said Stewart Bailey, executive vice president, corporate affairs at AngloGold.Harmony CEO Peter Steenkamp said Mponeng could help his company replace depleting reserves, but added that recent changes to South Africa’s mining laws have raised the cost of doing deals. In particular, an acquirer would have to fund a 10% stake in the mine for employees and communities to promote black economic empowerment.“You have to build all this into your price,” Steenkamp said on Aug. 20. “That option makes South African projects difficult.”Sibanye InterestSibanye is also interested, not least because Mponeng lies adjacent to its Driefontein mine, said CEO Neal Froneman. While the company is subject to a non-disclosure agreement, he confirmed that Sibanye is part of the process.“Sibanye is well positioned to deliver shareholder value and consider this opportunity,” Froneman said.There is also interest from Chinese buyers, including Heaven-Sent Capital Management Group, in some of the smaller AngloGold assets, the people familiar said.Heaven-Sent acquired another mine from AngloGold two years ago and holds mining assets in South Africa through Village Main Reef Ltd.“We assess possible new acquisitions as opportunities arise; for obvious reasons we don’t go into the specifics of this process,” James Duncan, a spokesman for Village Main Reef, said in an email.Marian Van Der Walt, a spokeswoman for Harmony, declined to add to the comments made by CEO Steenkamp last month.For the world’s No. 3 gold producer, there could be far-reaching implications. The sale would complete AngloGold’s withdrawal from South Africa, allowing it to focus on more profitable operations and potentially shifting its primary listing away from Johannesburg to London or Toronto. A South African exit would also remove the discount that AngloGold trades at to global peers such as Barrick Gold Corp., according to RBC Capital Markets.Structuring DealA weaker rand, which lowers costs for South African miners, and a higher gold price are burnishing Mponeng’s appeal. In the second quarter, a key measure of costs at the mine fell to $1,174 an ounce, compared with an average gold price of almost $1,309.While Mponeng would complement their existing operations, neither Harmony, nor Sibanye is flush with cash. Sibanye reported a first-half loss and is burdened by debt piled up during a string of acquisitions in the platinum industry. Harmony reported a loss for the 12 months through June.AngloGold may be open to receiving part payment in future cash flows from Mponeng -- similar to the deal Sibanye concluded when it bought mines from Anglo American Platinum Ltd., said James Bell, an analyst at RBC Capital Markets.“I think they are willing to be more flexible potentially on valuation but the key message is this is no fire sale,” he said. “If they are getting low-ball offers, I don’t expect them to sell just to get the assets off the books.”(Updates with share discount to global peers in 14th paragraph.)To contact the reporters on this story: Felix Njini in Johannesburg at email@example.com;Loni Prinsloo in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan Griffiths, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Zacks Market Edge Highlights: AngloGold, Barrick Gold, Royal Gold, SPDR Gold and Direxion 3x Gold Miners
Declining debt levels and focus on improving quality, productivity and lowering costs in the iron ore business will drive Vale's (VALE) growth despite the impact of the Brumadinho disaster.
Trade has played foul on Wall Street throughout August, sending the broad indices into a tailspin, thus compelling investors to flock to gold as a great store of value and hedge against market turmoil.