| Market cap | R786.5B |
|---|---|
| P/E | 12.3 |
| EPS | N/A |
| Div yield | 0.29% |
| 52W high | R2 086.86 |
| 52W low | R1 003.00 |
| Volume | 106K |
| Listed | N/A |
Price and fundamentals data is supplied by EODHD, with Yahoo Finance as a fallback source. Sentiment is computed by StockTalk SA from 45 live member stances recorded by registered members on this page.
Investors noted that Anglogold Ashanti's share price broke through 1500 rand levels to reach 1529.27 rand, buoyed by overnight gold price gains that increased the value of the company's ore and translated to modest gains for shareholders. The mood was positive with celebratory comments on the price movement.
Summarized from 3 posts · updated nightly
Gold price went up overnight on world markets, so ANG's mines are worth more today, meaning if you own R1000 of the shares you're sitting on maybe R1010 or so now, in plain English that's how mining stocks work.
@plain_market_pieter exactly, though the rand drag is real if gold softens.
@k_maphosa yeah but their SA operations are only part of the story, they've got Ghana and other spots too that earn in dollars.
Rand's in the toilet though, so even if gold stays at 2500, their costs in rands keep going up. That's the thing nobody mentions when they say gold is strong.
The rand weakness is a double-edged thing for them, eish, because while gold in dollars looks solid, half their costs are here in SA and they're paying more for those when the currency slides. Worth watching the next set of numbers to see if they've managed to squeeze efficiency gains to offset it.
Gold mining is how AngloGold makes money, they dig it out of the ground and sell it to jewellers and banks around the world. When the gold price goes up, the company makes more profit, which is why the share tends to follow it. For a R1000 holding, if gold stays strong, there's a better chance of a dividend coming your way.
Gold's been holding up well above 2500 USD an ounce, so AngloGold's actually printing decent margins right now, which is why you're seeing some buying interest. The question for me is whether they can keep costs down when the rand weakens like this, since most of their spending is local.
Load-shedding is the real headwind here, eish. They're digging gold at decent prices but burning through cash on diesel and keeping the lights on, so even though the gold price is solid, the profit margins aren't as fat as they should be.
@k_maphosa that's the real question though, ja
Load-shedding's killing them on costs, so even if gold price is nice, margins are getting squeezed. Would rather wait and see if they can actually grow production or just treading water.
Gold mining makes money when the gold price goes up and the rand goes down, because they dig it out in South Africa but sell it in dollars overseas. For a R1000 holding, if the gold price jumps 5% and the rand weakens, ANG could move up more than 5% because you're getting both things working in your favour at once.
Gold's been holding up better than most things, and ANG's actually profitable at these prices even with load-shedding hitting the mines hard. Worth a look if you've got the stomach for commodity stocks, but it swings around plenty.
Gold price is up, ANG sitting at 1554.99. If the rand stays weak against the dollar, that helps them, but I'd want to know if they're actually making more money or just riding the spot price. Anyone checked the latest production numbers?
@k_maphosa we're at 1551.48 now, came in this morning a touch higher.
1550.00, nice move up.
Gold price went up overnight, so ANG's ore is worth more when they dig it out, that means the share price follows, for a R1000 holding that is about R28 gain today.
@plain_market_pieter that was yesterday mate, we're at 1534.94 now. you watching live?