Nevada
AngloGold Ashanti: The Beatty District Projects In Nevada Are Advancing (NYSE:AU)
Part I – Introduction
Johannesburg-based AngloGold Ashanti Limited (NYSE:AU) released its Q1’23 results ending March 31, 2023, on May 12, 2023.
Note: This article updates my previous article on AngloGold Ashanti, published on October 17, 2022. I have been following AU’s regularly since December 2020.
Note: On May 12, 2023, AngloGold Ashanti moved its primary listing to New York from the Johannesburg Stock Exchange (JSE) to access a larger pool of capital and reduce risk associated with South Africa.
1 – Q1’23 Results and Commentary
The company owns producing assets and projects in three continents, with the Beatty District projects in Nevada, USA, with expected first production at the end of 2025. Annual output of 300K Oz.
The Company continues to record an increasing underground grade trend, reaching 1.8 G/T in Q1’23.
Also, on March 16, 2023, AngloGold Ashanti and Gold Fields (GFI) agreed to form a Joint Venture combining Gold Fields’ Tarkwa mine and AngloGold’s neighboring Iduapriem gold mine in Ghana. The JV will be completed by year-end 2023 or early next year.
The Tarkwa Mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem Mine is currently 100% owned by AngloGold Ashanti. Both mines are located near the town of Tarkwa in the country’s Western Region.
Production per Regions in Q1’23:
1.1 – Africa
Operations produced 348K Au Oz at a total cash cost of $1,135/oz for the 3-month ended March 31, 2023. Strong performances from Iduapriem and Obuasi. Also, Obuasi continued its planned ramp-up, a 58% year-on-year jump in production.
1.2 – Latin America
The Americas operations produced 111K Au Oz at a total cash cost of $1,338/oz for the period ending on March 31, 2023. Production was down YoY.
1.3 – Australia
The Australia operations produced 125K Au Oz at a total cash cost of $1,309/oz for the period ending on March 31, 2023.
2 – Stock performance
I am covering two other gold miners mining in South Africa: Harmony Gold (HMY) and Gold Fields Ltd.
AngloGold Ashanti has dropped significantly since its peak in May 2023. However, AU is now up 60% on a one-year basis.
Part II – Global Presentation and Gold Production
1 – Q1’23 Gold production
1.1 – Quarterly Production
AngloGold Ashanti sold 583K Au Oz in Q1’23 and produced 584K Au Oz. Production was down 0.6% from 1Q22.
1.2 – Quarterly Production per Mine
The company produced gold from ten different mines:
2 – All-in Sustaining Costs and Gold price realized
All-in-sustaining cost (AISC) was $1,418 per ounce in 6/2022. An increase of 6.4% from the last year-6 months was mainly due to planned higher sustaining CapEx and increased total cash costs.
Part III – AngloGold Ashanti – Balance Sheet and Production Q1’22 versus Q1’23: The Raw Numbers
Note: Like most South African gold and PGM miners, full results are posted every six months, complicating the analysis.
AU Quarterly
Q1’22
Q1’23
Total Revenues in $ Million
1,052
1,028
Total Revenues, including JV in $ million
1,196
1,164
Profit attributable to shareholders in $ Million
177
66
Earnings per share diluted $/share
0.42
0.16
Adjusted EBITDA $ Million
438
320
Cash from operating activities in $ Million
533
94
Capital Expenditure in $ Million
215
227
Free Cash Flow in $ Million
265
-152
Total Cash $ Million
1,045
810
Borrowing $ million
1,960
1,945
Adjusted Net debt in $ Million
917
1,131
Shares outstanding (diluted) in Million
420.25
418.31
Gold Production
Q1’22
Q1’23
Total Gold production in K Oz
588
584
Gold production sold in K Oz
597
583
Gold price realized $/Oz
1,881
1,895
AISC in $/oz
1,405
1,619
Source: Company filings
AngloGold Ashanti: Balance sheet details
1 – Revenues and Trends. Revenues were $1,028 million in Q1’23
The revenues for Q1’23 were $1.028 billion. Net income was $66 million or $0.16 per diluted share.
The decrease in revenue from product sales was mainly due to the decline in gold. Condensed Consolidated Interim Financial Statements for the quarter ended 31 March 2023.
Adjusted EBITDA for the first quarter of 2023 was $320 million, compared with $438 million for 1Q22.
2 – Free cash flow was a loss of $152 million in Q1’23
Note: Generic free cash flow is the cash from operations minus CapEx.
3 – AngloGold Ashanti’s debt situation is stable and solid
4 – 2023-2024 Guidance
2023 gold production is expected to be 2.45 Moz to 2.61 Moz, and AISC is between $1,405 and $1,450 per ounce.
CapEx will be between $0.96 billion and $1.07 billion.
Part IV – Technical Analysis and Commentary
Note: The chart has been adjusted for dividends.
AU forms a descending triangle pattern with resistance at $23.25 and support at $19.6.
The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support. This pattern indicates that sellers are more aggressive than buyers as price continues to make lower highs. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend.
Thus, the general strategy has not changed for AngloGold Ashanti. I recommend trading short-term LIFO about 50%-60% and keeping a core long-term position for a final target of $30. The basic strategy I recommend in my marketplace is “The Gold and Oil Corner.”
For this week, I recommend trading the channel by selling about 50%-60% of your position between $23 and $23.5 with possible higher support at $25.8 and accumulating between $20 and $19.5 with possible lower support at $17.25.
Warning: The TA chart must be updated frequently to be relevant. It is what I am doing in my stock tracker. The chart above has a possible validity of about a week. Remember, the TA chart is a tool only to help you adopt the right strategy. It is not a way to foresee the future. No one and nothing can.
Nevada
Nevada governor to deliver address ahead of legislative session
CARSON CITY — Gov. Joe Lombardo will give his 2025 State of the State Address at 6 p.m. today in Nevada’s capital, where he will share his goals and priorities ahead of the upcoming legislative session.
“I look forward to sharing the progress my administration has made since my inaugural address, and I’m excited to outline my common-sense vision for our state ahead of the upcoming legislative session,” Lombardo said in a statement, highlighting efforts to keep taxes low, balance the state budget and bring investments to education and the workforce.
“As we look ahead, I’m eager to build on our progress in education, economic development, healthcare, housing, and public safety,” he said.
Every biennium, two weeks ahead of the legislative session, the governor delivers a State of the State Address that outlines his agenda and provides a framework for what lawmakers can expect over the course of the 120-day session.
In last November’s election, Lombardo successfully fended off a possible Democratic supermajority in both chambers that would have allowed Democrats to override any of his vetoes, greatly reducing his power. While Democrats still hold majorities in both the Assembly and Senate and can set their own agenda, any bill they pass must ultimately be signed into law by Lombardo, who is accustomed to wielding his veto power — having vetoed a record 75 bills in the 2023 session.
Ahead of the governor’s address, the Nevada State Democratic Party launched an ad titled “Expensive,” accusing Lombardo of raising costs for families due to his 2023 vetoes. The party pointed to housing bills that would have capped rent increases for seniors and would have established a new summary eviction procedure for tenants, as well as bills that would have guaranteed school meals to public school students and lowered the price of Medicare-negotiated prescription drugs.
This is a developing story. Check back for updates.
Contact Jessica Hill at jehill@reviewjournal.com and McKenna Ross at mross@reviewjournal.com. Follow @jess_hillyeah and @mckenna_ross_ on X.
Nevada
Nevada gets past Air Force, 68-62, for second straight conference win; San Jose State is up next
None of the Mountain West Conference games are going to be easy and Air Force proved that to Nevada on Tuesday night.
The Falcons took Nevada to the wire before the Pack recovered and came away with a 68-62 win in front of 7,430 fans at Lawlor Events Center on Tuesday.
Tre Coleman led Nevada with 18 points and nine rebounds and Kobe Sanders had 11 points as the Wolf Pack improved to 2-0 in the Mountain West, 10-7 overall. Coleman also had four assists and Sanders had five.
The six-point margin at the end was Nevada’s largest lead of the game.
Next, Nevada hosts San Jose State, at 3 p.m. Saturday. The Spartans upset New Mexico, 71-70, on Tuesday.
There were 10 lead changes and seven ties. Air Force led, 60-59, with 3 minutes, 21 seconds left.
Kobe Sanders hit a bucket to give Nevada a 61-60 lead with 2:36 remaining, then Daniel Foster hit a 3-pointer to give the Pack some breathing room.
Ethan Taylor led the Falcons (3-14, 0-6) with 22 points and Kyle Marshall added 12.
Nevada coach Steve Alford said he liked his team’s fight. saying they won the last four minutes of the first half, 12-4 and the last four minutes of the second half, 12-2.
Key Stats
Nevada was dismal from the free throw line, connecting on 10-of-23. including four straight in the final minute.
The Pack missed the front end of four free throws, which Alford said actually made them 10-of-27 from the stripe.
“If we make our foul shots, then this game is a different look,” Alford said. “It’s really an odd deal because we started out the year so well (on free throws) and now we’ve got to be one of the worst fouls shooting teams in the league. It was an ugly game because of our foul shooting.”
Nevada had 30 points in the paint, to 18 for the Falcons.
Nick Davidson was 0-for-5 from the free throw line and he stayed well after the game Tuesday night shooting free throw after free throw. He had nine points and four assists in the game.
Air Force hit 10-of-27 from 3-point rahge and Nevad awas 6-of-014 from the arc.
Daniel Foster
Foster started and played 29 minutes, scoring five points on 2-of-4 from the field.
Alford said Foster does what the coaches want him to do.
“Daniel has a incredibly competitive mind. He wants to win and he knows he can influence wins without scoring. He guards like crazy. He rebounds. He gets loose balls,” Alford said. “And now we’re asking him to play some point (guard) to help Kobe out.”
First Half
Air Force led 35-33 at the break after the Wolf Pack tied it at 33 . The Pack trailed by 11 (31-20) with 5:06 left in the half.
Nevada made just 2-of-8 free throws in the first half, including three misses on front ends of one-and-ones. The Pack was 3-of-9 from the arc. Air Force made 5-of-6 free throws and 6-of-12 from 3-pont range.
The Series
Nevada leads the overall series with Air Force 18-3 and has won five straight in the series.
Up Next
San Jose State plays Nevada at Lawlor Events Center at 3 p.m. Saturday.
The Spartans (9-10, 2-5) beat New Mexico 71-70 on Tuesday night.
Nevada’s Remaining Schedule
- Jan. 18, San José State at Nevada, 3 p.m. (TV: KNSN, Radio: 95.5 FM)
- Jan. 22, Nevada at Utah State, 6 p.m. (TV: FS1, Radio: 95.5 FM)
- Jan. 25, Nevada at San Diego State, 7 p.m. (TV: CBS SN, Radio: 95.5 FM)
- Jan. 29, Nevada at Boise State, 7 p.m.
- Feb. 1, UNLV at Nevada, 8 p.m.
- Feb. 4, Nevada at Air Force, 6 p.m.
- Feb. 10, Fresno State at Nevada, 8 p.m.
- Feb. 14, Nevada at San Jose State, 7 p.m.
- Feb. 18, Nevada at Colorado State, 6 p.m.
- Feb. 22, Boise State at Nevada, 3 p.m.
- Feb. 25, Wyoming at Nevada, 7 p.m.
- Feb. 28, Nevada at UNLV, 8 p.m.
- March 4, New Mexico at Nevada, 6 p.m.
- March 8, Nevada at San Diego State, 7:30 p.m.
Nevada
Las Vegas man reported missing in Nevada County found safe
NEVADA COUNTY – Search crews were out in the Hoyt’s Crossing area of Nevada County, looking for a missing Las Vegas man who was reportedly last seen in that area over the weekend.
The Nevada County Sheriff’s Office said 29-year-old Michael McIntosh was last seen at Hoyt’s Crossing on Sunday.
As of Tuesday, search crews with the sheriff’s office along with California Highway Patrol were looking for him. A helicopter and crews on foot were involved in the search effort.
McIntosh was last seen wearing a blue flannel shirt, tan, pants, and no shoes. He was voluntarily missing, the sheriff’s office noted.
Late Tuesday morning, the sheriff’s office announced that McIntosh had been found safe. No other details have been released.
Hoyt’s Crossing is along the South Yuba River, about a half mile upstream of the South Yuba River Bridge.
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