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AngloGold & Regis JV Authorizes Havana Underground Project

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AngloGold Ashanti plc (AU - Free Report) and its Tropicana joint venture partner Regis have authorized the Havana underground project in Western Australia. This move is set to increase gold production at the Tropicana mine and extend its life.

AngloGold Puts Efforts to Boost Production at Tropicana

The Havana underground project is planned to enhance gold output between 2027 and 2029 beyond the Tropicana mine's existing production levels. Tropicana's gold production will be increased by three separate, underground sources once the Havana project is fully operational.

The Havana ore will be processed at the Tropicana facility, which can process 9.4 million tons of ore per year.

AU & Regis to Leverage Tropicana’s Existing Infrastructure

The Tropicana Gold Mine has a strike length of six kilometers and four mineralized zones. This includes the Havana deposit, which will be developed as part of the new underground project. An underground mine will be established 500-700 meters below the surface, beneath the active Havana open pit. 

The project will use the Tropicana mine's existing infrastructure with minimal modifications, lowering costs and increasing efficiency.

AngloGold & Regis JV to Create Long-Term Value

Regis owns 30% of the Tropicana joint venture, with AngloGold owning the remainder. 

The Havana underground project illustrates the possibility for further exploration and mine life extension, increasing its value and ensuring Tropicana's long-term subsurface expansion.

AU Q2 Earnings Beat Estimates, Rise Y/Y

In the second quarter of 2024, AngloGold reported a 19.3% year-over-year increase in revenues to $1.38 billion. The top line surpassed the Zacks Consensus Estimate of $1.23 billion. The company reported earnings per share of 60 cents, up from 17 cents in the second quarter of 2023. The bottom line beat the Zacks Consensus Estimate of 51 cents.

AngloGold’s Share Price Performance

Shares of the company have gained 70.7% in the past year compared with the industry’s growth of 35.5%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

AU’s Zacks Rank & Other Stocks to Consider

AngloGold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Eldorado Gold Corporation (EGO - Free Report) . CRS, IAG  and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.

The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.

The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.

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