Resource News

Resource Investing

The Investing News Network looks at ASX-listed gold companies AngloGold Ashanti and Alumina Limited

For investors focused on the resource space, a good way to track companies listed in Australia is to look at the S&P/ASX 300 (INDEXASX:XKO). The index includes all S&P/ASX 200 (INDEXASX:XJO) companies as well as about 100 smaller-cap companies, and as of April 2015 accounted for 74 percent of the Australian equities market. Specifically, the S&P/ASX 300 Metal & Mining (INDEXASX:XMM) division is a great source for companies to watch.
The Investing News Network is thus profiling companies on the S&P/ASX 300 Metal & Mining index. This week’s companies are AngloGold Ashanti (ASX:AGG) and Alumina Limited (ASX:AWC)

Headquartered in South Africa, AngloGold Ashanti is a big name when it comes to gold mining. The company has 19 gold mining operations across nine countries. The company also has a portfolio of exploration, greenfield and brownfield projects. In 2014, AngloGold Ashanti produced 4.4 million ounces of gold, which generated $5.2 billion in gold income.
The company announced on December 17 that commissioning of the first gas generators is underway ahead of schedule in the power station at its Tropicana gold mine in Western Australia.
According to Michael Erikson, AngloGold’s Senior Vice President Australia commented that the “natural gas delivered by the EGP will underpin the future of AngloGold Ashanti’s Australian operations by reducing exposure to diesel price volatility and significantly reducing the number of trucks on the road, which has an important safety benefit as well as reducing road maintenance costs.”
Erikson also noted that the EGP is a significant piece of infrastructure for Western Australia, with the potential to benefit other users.

While not a mining company, Alumina’s strategy is to invest in bauxite mining, alumina refining and select aluminum smelting operations worldwide. The company was created in 2002 through the demerger of WMC Limited’s interest in AWAC from it’s nickel, copper, uranium and fertilizer business.
The company is also in partnership with Alcoa in Alcoa World Alumina & Chemicals, the world’s largest alumina business. Alumina owns 40 percent of AWAC while Alcoa owns 60 percent and is also the manager. AWAC is the owner and operator of tier 1 bauxite mines and alumina refineries.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. 
Related reading:
ASX Round-Up: Gold Producers Sandfire Resources and Regis Resources Holding Steady
ASX Round-Up: Zimplats and Independence Group at a Glance
ASX Round-Up: Oz Minerals and PanAust in the Spotlight
ASX Round-Up: A Look at Regal Resources and Western Areas


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