NEW YORK (TheStreet) -- AngloGold Ashanti (AU) shares are up 13.2% to $9.36 on heavy volume Monday after the international gold mining company beat its own third quarter costs and production forecast and narrowed its full year production outlook to the top end of its previous guidance.
The company reported a 10% decrease in all-in-sustaining costs under the previous year to $1,036 per ounce, and an all-in costs decrease of 19% to $1,144 per ounce, while production increased 8% to 1.128Moz, topping guidance.
The company said that its strong performance over the first three fiscal quarters allowed it to tighten its full year production outlook to between 4.35Moz and 4.45Moz from its initial full year guidance of between 4.2Moz - 4.5Moz, despite negative factors such as the sale of its Navachab mine in Namibia and losses associated with earthquakes in South Africa.
"We've prioritized and have started working on a range of self-help measures to generate cash from within the current operating base to further deleverage the balance sheet over the medium term. We will also consider the sale or partnership of an operating asset, if required," said CEO Srinivasan Venkatakrishnan.
TheStreet Ratings team rates ANGLOGOLD ASHANTI LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANGLOGOLD ASHANTI LTD (AU) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: AU Ratings Report