Top Bears Reasons To Sell — Vote below!

Add a New Bears Reason

Company: AngloGold Ashanti (AU)
Current price:
Headline: (100 character max)
2 votes

  Ashanti hit by hedge position and rising costs

AngloGold Ashanti has been reducing its hedge book since 2001, but at 31 December 2007, the marked-to-market value of all its hedge transactions comprising its aggregate hedge positions was negative USD 4.27bn.

This highly negative position was a principal driver of AngloGold Ashanti's announcement in May of a capital issue, still underway, to raise some USD 1.7bn by the issue of 71m new shares at ZAR 194.00 per share. The offer closes at 12:00 South African time on Friday, 4 July.

While the news of AngloGold Ashanti's capital issue was readily received by investors, to the extent that the proposed number of new shares was increased slightly, the fundamental focus has never really moved away from the deadly cocktail of rising costs and falling yields on the South African mines.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki