Why analysts have cooled on AngloGold
The market has hardened towards the gold miner’s whip-cracking CEO Alberto Calderon thanks to a poor operating performance and too much volatility in earnings
Next month signals two years since Alberto Calderon became CEO of AngloGold Ashanti. On paper, much has been achieved. The former BHP executive has cracked the whip on mine cash costs, installed a $1.1bn carbon reduction plan, restructured the executive committee, and readied the company for a primary listing in New York.
Analysts, though, are unconvinced following a poor operating performance so far this year. AngloGold reported a $205m cash outflow for the first six months after suffering setbacks at its mines. AngloGold CFO Gillian Doran insisted one-off events were to blame. “We look forward to reporting a much improved second half,” she said during a presentation. “So do we,” Adrian Hammond, an analyst for Standard Bank, responded tartly...
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