ANG trade ideas
Our opinion on the current state of ANGGOLD(ANG)AngloGold Ashanti (ANG) is an international gold producer that used to have operations in South Africa (the last of which, Mponeng, has now been sold) and still has assets in the DRC, Tanzania, Ghana, Mali, and the US. It had some significant problems in bringing the Obuasi mine into production and with the Tanzanian government over royalties. The company has 14 operational mines.
AngloGold has retained its listing on the JSE despite having no South African assets. On 14th July 2021, the company announced that it had acquired Corvus Gold for R5,4bn in cash to extend its exploration in Nevada, USA. This is a relatively marginal, short-life (11 years) gold mine with rising costs, falling grades, and a volatile gold price.
In its results for the year to 31st December 2024, the company reported a, "...nine-fold increase in 2024 free cash flow to $942m versus prior year; Adjusted EBITDA* +93% year-on-year and H2 dividend growth of 263% to 69 US cents per share; total cash costs* +4% for FY 2024, below group inflation." Headline earnings per share (HEPS) was 221c (US) compared with a loss of 11c in the previous period.
Technically, the share has been rising since March 2024 in what looks like a volatile upward trend. On 10th September 2024, the company announced that it had made an offer for 83,6% of Centamin in Egypt for 0.06983 AngloGold shares and $0,125 in cash. The announcement caused ANG's share price to fall.
This share remains a speculation on the gold price.
AngloGold Ashanti $AU: A Hidden Goldmine or High-Risk Play? AngloGold Ashanti ( NYSE:AU ): A Hidden Goldmine or High-Risk Play? 🏅🔍
1/10
AngloGold Ashanti NYSE:AU shows 6% annual revenue growth but faces a tough challenge—earnings have been declining at -35.8% per year! Industry earnings are up 10.9%, leaving AngloGold behind. 📉 Can they turn things around?
2/10
Major shakeup: NYSE:AU is acquiring Egypt’s largest gold miner, Centamin, in a $2.5 billion deal. This could reshape their future production and reserves. 🚨 Bold move or financial strain?
3/10
Asset sales are also in play! AngloGold is fielding bids for the Tropicana gold mine in Australia. A strategic move to streamline operations—or desperation for cash flow? 🏗️
4/10
Analysts have set a target price of $31.75, hinting at upside potential from the current price. Yet NYSE:AU ’s ROE of 3.4% and net margins of 2.3% lag behind peers. 📊 Is the stock undervalued or stuck in a profit rut?
5/10
Operational risks loom large. AngloGold operates across Africa and South America, exposing it to geopolitical instability, regulatory shifts, and potential disruptions. 🌍 How stable are these gold mines?
6/10
Strengths: AngloGold has diversified operations across multiple continents and a strong asset base. That reduces over-dependence on any one region. 🗺️ Diversity is their defensive edge.
7/10
Weaknesses: Declining earnings are a red flag for investors. High operational costs further squeeze profitability. 💸 Can NYSE:AU control expenses while scaling up production?
8/10
Opportunities: The Centamin acquisition could supercharge their gold production. Meanwhile, asset sales might optimize their portfolio by shedding low-margin operations. 🏆 Growth through smarter assets?
9/10
Threats: Volatile gold prices remain a double-edged sword. Plus, political risks in key regions like Africa can disrupt mining operations. ⚠️ Can AngloGold weather these external shocks?
10/10
Your turn! Is AngloGold Ashanti NYSE:AU a buy, hold, or avoid? Vote now! 🗳️
Golden buy opportunity 🏆
Hold for now 🔄
Too risky, avoid ⚠️
$JSEANG - Anglo Gold Ashanti: I Count Five Waves DownThe last coverage of Anglo Gold Ashanti was on 05.07.2023, link below.
The move down from 55688 was still in three waves but now it is clear that a five wave impulse for wave A is forming as part of a larger zigzag ABC correction.
There are no reversal signs yet but it is a bit late to short so I will monitor price for reversal patterns and until then, I will sit on my hands.
ANG: symmetrical triangle pattern?A price action above 44900 supports a bullish trend direction.
Further bullish confirmation for a break above 47900.
The target price is set at 50600.
The stop-loss price is set at 43400.
A break-up out of the symmetrical triangle pattern might trigger further upside potential.
Our opinion on the current state of ANGGOLD(ANG)AngloGold Ashanti (ANG) is an international gold producer, once with significant operations in South Africa, including the now-sold Mponeng mine. The company still maintains assets across several countries including the DRC, Tanzania, Ghana, Mali, and the US. It encountered substantial issues in initiating production at the Obuasi mine and faced disputes with the Tanzanian government regarding royalties. Despite divesting from its South African assets, AngloGold has retained its listing on the Johannesburg Stock Exchange (JSE).
On 14th July 2021, AngloGold announced its acquisition of Corvus Gold for R5.4 billion in cash, aiming to extend its exploration efforts in Nevada, USA. The gold market has seen fluctuating prices: peaking over $2000 in August 2020, then dropping below $1700 by March 2021, and since then oscillating sideways and upwards—especially amid heightened tensions from the Ukraine crisis—with current prices around $1900.
For the quarter ending on 30th September 2023, AngloGold Ashanti reported a 3% increase in gold production compared to the previous quarter, from 652,000 ounces to 673,000 ounces. This rise was attributed mainly to processing higher ore tonnes, although it was partially offset by lower recovered grades. The company operates what it describes as a relatively marginal, short-life gold mine with an 11-year lifespan, contending with rising operational costs, diminishing ore grades, and the volatility of gold prices.
In the subsequent update for the quarter ending 31st March 2024, gold production was up by 2%. Notable improvements were recorded at various sites, including Cuiabá (AGA Mineração) with a 55% increase and Serra Grande with a 40% increase, both benefiting from performance enhancement initiatives. Other increases were seen at Kibali (+19%) and Geita (+16%).
The company's stock remains highly volatile, presenting a risky option for private investors, yet it could potentially capitalize on rising gold prices driven by ongoing global tensions, including those in Ukraine and the Middle East. AngloGold Ashanti is also transitioning its primary listing to the US, which may potentially improve its market rating. Technically, the stock has shown an upward trend since March 2024, indicating the possible onset of a new bullish phase.
AU - a gold mining stock rises with spot gold LONGAU AngloGold Ashanti has operations in a variety of locations including North America and Africa.
With spot gold rising and mostly fixed operational costs, AU stands to improve its overall
margins. Here on a weekly chart, price has crossed over the POC line of the volume
profile and the mean anchored VWAP line. The Price Momentum Oscillator and Relative
Trend Index indicators are showing reversals from bearish to bullish. Price action is in
a symmetrical triangle. Price has 20% upside before reaching the descending resistance
trendline which may take a month or so. I will open a long trade here looking for a best
entry on a 120-240 minute chart.
ANG: Automating InformationWednesday 20 March 2024, 06h30 | ANG Anglogold Ashanti | This year’s highest end-of-day close for the share was on Monday 11 March at 42373c. At the end of that trading day, the Tactical Trading Guide gave you the following reading: “Strong upside move but momentum is slowing, with sellers becoming active”. During the next trading session, the share was lower by 4.28% and has since declined further, testing a low of 38239c during yesterday’s session. Below is the updated chart as of yesterday’s close, shown with the reading on the day which the share peak. Below the chart is yesterday’s end of day reading from the Tactical Trading Guide. For long re-entries, the previous breakout level at the 50-day EMA is a confluence zone. As you’ll note the medium term time frame (2 to 4 weeks) states that traders could watch the 50-day EMA as a range for a rebound buy/long. For active traders, there are plenty of opportunities.
⛏️ AngloGold Ashanti (AU): A Mining Move! 🌍⛏️📊 Analysis:
Strategic Investment: NYSE:AU is making a strategic investment in G2, emphasizing exploration success as a growth driver.
Listing Shift: Plans to switch the primary listing from Johannesburg to New York are underway.
Major Shareholder: AU aims to be a major shareholder in G2.
Cost Management: Commitment to cost management is highlighted.
Bullish Sentiment: The analysis expresses a bullish sentiment on AU.
Entry Strategy: Consider an entry above the $16.00-$17.00 range.
Upside Target: Potential upside target in the $25.00-$26.00 range.
🌐 Note: Stay informed about mining industry trends and any developments in AU's exploration activities.
AngloGold Ashanti Surge Despite Production Challenges ReportAngloGold Ashanti (NYSE: NYSE:AU ), one of the leading global gold mining companies, recently disclosed its 2023 full-year results, revealing a 3% decline in gold output compared to the previous year. This setback was attributed to various operational challenges encountered across key mining sites in Tanzania, Guinea, and Ghana. Despite the decline in production and gross profit, the company's dividend payout also experienced a reduction. As investors assess the implications of these developments, it prompts a deeper examination of AngloGold Ashanti's ( NYSE:AU ) operational resilience and strategic outlook.
Production Challenges:
In 2023, AngloGold Ashanti ( NYSE:AU ) faced hurdles stemming from production slippages at crucial mines, notably in Tanzania, Guinea, and Ghana. Factors such as poor ground conditions at the Obuasi mine in Ghana and a carbon-in-leach tank failure at the processing plant in Siguiri, Guinea, significantly impacted gold output and operational costs. These setbacks highlight the inherent risks associated with mining operations, particularly in geologically complex regions. Moreover, the decline in ore tons processed and recovered grades underscores the operational intricacies involved in maintaining consistent production levels.
Financial Performance:
The company's full-year results for 2023 revealed a notable decline in gross profit, which fell by 9% compared to the previous year, amounting to $1.027 billion. This decline reflects the adverse effects of operational disruptions and underscores the financial implications of production challenges on profitability. Additionally, the decision to reduce the dividend payout from $0.23 to $0.19 per share signals a cautious approach by management amidst the operational headwinds. While dividend reductions can be disappointing for investors seeking income, they also indicate a prudent capital allocation strategy aimed at preserving financial stability and supporting future growth initiatives.
Operational Resilience and Mitigation Strategies:
Despite the setbacks faced in 2023, AngloGold Ashanti ( NYSE:AU ) remains committed to enhancing operational resilience and mitigating risks. The company's management has outlined strategic initiatives aimed at addressing the underlying issues that contributed to the production decline. This includes investments in infrastructure upgrades, technology adoption, and operational efficiencies across its mining assets. By prioritizing safety, sustainability, and productivity, AngloGold Ashanti ( NYSE:AU ) aims to optimize its operational performance and deliver long-term value to shareholders.
Investor Considerations:
For investors evaluating AngloGold Ashanti's ( NYSE:AU ) stock, the recent production challenges underscore the importance of conducting thorough due diligence and assessing the company's risk management capabilities. While operational disruptions are inevitable in the mining industry, investors should focus on the company's ability to navigate challenges effectively and execute its strategic objectives.
Conclusion:
AngloGold Ashanti's 3% drop in 2023 gold output, coupled with declines in gross profit and dividend payout, highlights the operational challenges inherent in the mining sector. However, the company's commitment to addressing these challenges through strategic initiatives underscores its resilience and long-term growth potential.
AngloGold Ashanti making Diamonds! - New target to R451.84Diamond Formation (Broadening) has formed on ANG.
This is a rare formation that resembles a Diamond.
It's also a formation between a tug of war between the Bulls and the Bears, until there is a breakout.
Now either I'm a Gold bullion, or intution is just telling me we are in for a breakout to the upside.
And funny enough the indicators don't agree as they're mixed.
Price >20
Price<200MA
Target R451.84
FUNDAMENTALS WHY LOWER INTEREST RATES BOOSTS GOLD:
Now before I go I wanted to share my fundamental view on why I think gold is in for upside. And it's because of the idea that the Interest Rates will remain down and even be cut up to 125 BPS.
But why would lower interest rates lead to a gold run up?
Here is some food for thought.
Remember when it comes to interest rate cuts it means the following:
Stimulates economic growth
This makes borrowing cheaper as interest rates are lower.
And it encourages more spending and investments by individuals and businesses.
Boosts buying from consumers
Also, with low interest rates it entices people to buy more.
And this is because the cost of loans drops.
This leads to them buying more homes, cars, and other goods.
There are other elements, but you get the idea.
Now, lets consider why lower interest rates could mean the gold price will rally
Reason #1: Lower interest rates and a weaker US dollar helps the gold price
When interest rates drop, the yield on bonds and savings accounts typically declines.
And a weaker dollar makes gold cheaper for people with other currencies.
It's like gold goes on a global sale, and everyone wants a piece!
So, this will drive up its demand and the price.
Reason #2: Investors get out of low yielding markets and into gold
Remember that when interest rates are high, investors move to high yielding markets.
They like to keep their money in the banks, bonds, money market or any other high interest savings accounts.
But when interest rates drop, investors don’t make much of their money from these assets.
And so, they will look to invest in markets like gold, which will drive the price up.
Reason #3: The golden safe-haven will prevail!
With interest rate cuts, it normally signals signs of economic uncertainty or weakness.
And during these times, investors will often seek out safe-haven assets.
Gold is a classic example of a safe haven that investors will look to buy.
And this golden attraction will help push the price up.
We need to wait for the breakout to act though...
Until then, we can observe and share our biases.
ANG: some strength in the price action?A price action above 33600 supports a bullish trend direction.
Almost testing its 200-week simple moving average. Crossing above this key resistance might propel the price action to 35500 (23.6% Fibonacci retracement) and beyond.
The target price is set at 37200 (just below its 200-day simple moving average).
The stop-loss price is set at 32500 or its 61.8% Fibonacci retracement level.
The price movement continues to follow an upward channel pattern, suggesting a bullish sentiment. Moreover, the significant resistance level currently being tested could potentially break, indicating a further upward trend.
#AU AngloGold Ashanti bouncing off bottom of flat top triangle?Anglo Gold seems to be morphing in the form of a flat top triangle but it is obviously very early stages. We have a 3 bar hold off the bottom trendline, which have on both prior occasions resulted in a fierce rally in price. Should we start to see follow through on Monday with a push above the 3 day highs then we have a really good chance of going to test the top of the range at R375.00. A break of R375.00 would then confirm the flat top triangle breakout with much higher targets in place.
Anglo Gold Ashanti - The big bad Vuvuzela A Rare broadening Triangle formation has formed on Anglo Gold.
This is a triangle that broadens outwards instead of inwards to the apex.
I like to call it a Vuvuzela formation.
Now right now the bias is sideways as it needs to break out of the range.
However, we can say technically it should break down as the prminent and previous trend was down.
But we are talking over 20% crash. And as an optimist with gold it's quite a bearish target to set.
Let's see who it plays.
AngloGold Ashanti (AU) Corporate Restructuring & Bullish OutlookAngloGold Ashanti (AU) has recently undergone corporate restructuring, relocating its primary listing from the Johannesburg Stock Exchange to the New York Stock Exchange (NYSE). This move is coupled with a bullish outlook for future growth.
Key Highlights:
Corporate Restructuring: AU completed its corporate restructuring by shifting its primary listing to the NYSE, enhancing its international presence.
Modest Net Income Growth: Despite a 9.2% net income growth over the past five years, AU demonstrates a bullish strategy for future expansion.
Shareholder Payout Ratio: The three-year median payout ratio to shareholders is 24%, indicating significant reinvestment of profits for business growth.
Bullish Stance and Price Targets:
AU is anticipated to perform well above $17.00-$18.00.
The upside target is set at $26.00-$27.00.
JSE Gold Miners - Multi Time Frame RatingsAn extract from this morning's research.
Wednesday 11-October-2023, 06h30 JSE Gold Miners. In the short term, the rally has been sharp. The SHORT TERM readings from the Tactical Trading Guide for Goldfields (GFI) and Harmony Gold (HAR) states the following: "General Trend Up However, Look For Failure To Hold Prior Session/Range Highs To Initiate 1-2 Day Short Setup".
For further context, these are the JSE Gold Miners on an equally weighted basis, highlighting the ratings on multiple time frame. Note the 4H time frame (top left corner) highlighting the ultra short term overbought conditions.
For more research insights, including trading ideas, get in touch today.
$JSEANG Slipping Another Line?I have pointed out a smaller Head & Shoulders in a report on 24 May 2023 already, when the price was at about R460-00. Was that formation just the tip of the ice berg? Though the price has not convincingly broke below the perceived neckline of a bigger Head & Shoulders pattern yet, this could get very ugly for this counter if this pattern gets confirmed indeed, and then plays out according to the theory of the pattern.
Anglogold on Verge of BreakoutAnglogold is in a falling wedge and we see price ready to breakout to the upside in the process confirming a weekly low price at R299.07. If we close above the green resistance, we want price to remain above the pink support in a move higher. This will guarantee a cycle where we will break that support onto a daily cycle low later in October ensuring we have a low probability of a failed cycle (i.e. lower than R299.07, which is also the stop-loss).
It is critical that we do not go lower than 23 February price, the previous weekly low, if we do then price will be in yearly decline.
Anglogold Monthly Reversal in PlayAnglogold is putting a short-term low with a bullish engulfing candle in September. The price objective would be to reach the declining trendline at most then decline into second quarter of 2023. Price for September 2022 going below that of September 2021 support price reversal after a swing high lower than March 2022. Ideally would be looking for a triple bottom in 2023 with price undercutting the low of September 2022. That low of 2023 would be most ideal to long gold shares to hold for many years and inflation might make a return with vengeance leaving central banks room to maneuver.
Gold Losing Its Glitter? Anglo Ashanti's Bearish Forecast PointsGold Losing Its Glitter? Anglo Ashanti's Bearish Forecast Points to R220
1. Price Formation: The price has broken out from an inverted C&H price formation on a daily chart.
2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a positive sign indicating short-term bearish momentum.
3. 200-day Moving Average is above the Price.
4. Thus, Mas 7<21<200
5. Relative Strength Index (RSI): The RSI is less than 50, indicating bearish momentum and potential further downward movement.
6. Price Target: R215.00
Anglo Ashanti – the Company
AngloGold Ashanti Limited is a global gold mining company formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation. The company is now among the world's largest gold mining companies, producing gold through a diverse portfolio of mines and projects spread across Africa, the Americas, and Australia.
AngloGold Ashanti's operations in the gold industry include exploration, extraction, processing, and smelting. In addition to gold, the company also produces silver, uranium, and sulfuric acid.
The company's shares are listed on the Johannesburg Stock Exchange (JSE) in South Africa,
ANGTo Note is research commentary is intended to alert to client to a potentially significant level or development, mainly from a technical perspective. Further, the content gives clients access to the analyst's perspective of an instrument which can help in preparing for a potential trading opportunity.
Anglogold Ashanti (ANG)
The share has unwound from it's high of 55688c to yesterday's low of 35040c.
This low is in line with: (1) the 61.8% Fibonacci retracement zone and (2) a range just above the 200-week simple moving average.
Considering that the share may be approaching oversold levels on a weekly (medium) basis, traders need to monitor for an improvement in price action which includes candle structure.
