New Strong Sell Stocks for September 4th

Axe Cap view

AngloGold Ashanti Joins Strong Sell Ranks: Time to Rethink Gold Exposure

A huge earnings downgrade puts AngloGold Ashanti in the spotlight for cautious investors on the JSE.

AngloGold Ashanti’s earnings expectations have plummeted over 100% in the last two months – a rare and brutal adjustment. This spells trouble for what many view as a safe haven. South African miners often help hedge rand depreciation or global uncertainty, but right now, AngloGold’s fundamentals are asking for a pause. The gold price hasn’t collapsed, so this speaks to operational or cost pressures specific to the company, not the metal itself. For JSE investors, it’s a signal to avoid chasing mining counters blindly. If you hold AngloGold, consider trimming. Other gold counters might fare better, but this one needs close watching. Meanwhile, the rand’s recent softness against the dollar (USD/ZAR) further erodes mining margins, as costs rise in local currency terms. This could delay any recovery. Of course, if global gold prices spike dramatically or operational issues improve, this negative outlook could reverse. this is just our opinion and not financial advice