AngloGold Ashanti (NYSE:AU)

A.G asked for a review of AngloGold Ashanti (NYSE:AU)

Anglogold is a giant mining company with worldwide operations. The stock is listed on several exchanges including New York, Johannesburg, Ghanaian, London and Australian stock exchanges, as well as the Paris and Brussels bourses.

Weekly Chart

Top labeled (1) at Q4 2003 followed by a year and a half A-B-C correction (wave 2 down) and a touch at the 200 weekly moving average (WMA). Anglo is currently in wave (3) up. The stock topped well before the gold indices, lost about 76.4% of the (i – 3) minor up wave progress and bounced from the 200 WMA.

Indicators – RSI stagnant just below 50, PPO still bearish below zero.

Support –Fibonacci lines below the current price.

Resistance – at Fibonacci lines above the current price and the Q1-2006 top.




































Daily chart

Rallied strongly lately from extreme oversold condition, 50 / 200 bearish DMA crossover.

Indicators – RSI trending down but still above 50, PPO above zero but seems to turn back down.

Support –Fibonacci lines below the current price.

Resistance – at Fibonacci lines above the current price and the and the pink downtrend line.

AngloGold Ashanti Ltd. (AU)

Anglo American the mother company reducing it stakes from ~50% to ~40%, In addition AngloGold Ashanti Ltd. (AU) is issuing 10.3 million new shares. Please remember that this company is the second largest hedger in the world (after Barrick Gold Corp. = ABX). Not your best way to play the Great global gold bull market, to say the least...Best case scenario I can see: trading range between the 50 and 38.2 Fibonacci lines, Avoid it.



Click on the chart below to enlarge:

AngloGold Ashanti under reserves pressure

Bullish for the Price of Gold (POG) :

AngloGold Ashanti under reserves pressure
Brendan Ryan
Posted: Fri, 10 Feb 2006
[miningmx.com] -- Like Harmony and Gold Fields before it, AngloGold Ashanti has reported a drop in its ore reserves which have fallen 19,8% to 63,3Moz at the end of December from 78,9Moz a year previously.


The development underscores the continuing pressure on the world’s gold majors to find the ounces necessary to replace the huge volumes of gold they are mining out annually which amounted to 6,2Moz for AngloGold Ashanti during 2005.

AngloGold Ashanti CEO Bobby Godsell is predicting a drop in annual production to between 5,8Moz and 6M0z for 2006 after which he expects the group’s output to recover to between 6,3Moz and 6,5Moz during 2007. read more...

Gold Hedgers - Be carefull !

AngloGold's loss trebles as bullion bets go awry
February 12, 2006

AngloGold Ashanti said its fourth-quarter loss more than trebled as bets on bullion prices went awry.

The company's net loss widened to R1.46 billion, or R5.51 a share, in the three months to December 31, from R415 million, or R1.56, in the third quarter, the company said in a statement to the JSE on Friday.

AngloGold entered contracts to sell 10.84 million ounces of gold at preset prices, much of it below the current market price. To buy back those contracts would have cost $1.94 billion (R12 billion) on December 31, compared with $1.35 billion three months earlier as the price of gold climbed 10 percent. With gold averaging $553.60 an ounce so far this year, losses on gold contracts are set to widen.

The losses "in the next quarter, if the gold price stays where it is, are going to be huge", said Wayne McCurrie, who oversees the equivalent of $6 billion at Advantage Asset Management in London. "It's a very large amount of money."
read more...