Anglogold: Trying to break away from the trough?
Combination big time hedger (16.3 million)and high cost producer ($220 avg cost). Struggles with production and like NDY begs off citing weather, "heavy rains reduces production in North America (down 12%), Australia, etc, etc." In South Africa they just have worn out, uneconomical mines especially at 285 POG. Australia just looks like more high cost mines, but trying to expand their only decent one, Sunrise. At least they can be said to be on the move: snapping up stakes in a few potential plums like Geita, Morila, Sadiola.
Like ABX, PDG, NDY, et al, strategy seems to be to meet all the gold they've already sold years ago by shoving high cost production (7 million/year)at it. Unclear whether they have been buying back positions. Press releases and reports (disclosure) are rather vague and unclear. Don't really benefit from higher gold (probably will be badly hurt with the new accounting rules), or flat gold, or lower gold, so appears to be just trying to get lucky. What a business model!
One of the less intelligent remarks I've made on these threads was that they might go after ASL. My god what for, to combine hedge books? Maybe Iamgold or Pangea makes more sense. |
