ANGLOGOLD Ashanti is to be included in the Russell 3000 and other Russell indexes from June 27, a development that may drive significant investment interest in the gold stock, especially from passive funds.
Alberto Calderon, CEO of AngloGold Ashanti, said in an announcement on Wednesday that the inclusion of his firm in the indexes when they are rebalanced would give a huge boost to liquidity. “This is an important milestone for AngloGold Ashanti,” he said.
About $10.6 trillion in assets are benchmarked against the Russell US Indexes, said AngloGold. The reconstitution of the Russell US Indexes ranks the 4,000 largest US stocks by market capitalisation to reflect changes in the investable equity market. This year’s rebalance is expected to drive more than $53bn in passive flows, and marks one of the highest-volume trading days of the year, it said.
It was for reasons of improved trading that AngloGold Ashanti announced in 2023 it was taking a primary listing on the New York Stock Exchange, while maintaining a secondary listing, and an office, in Johannesburg. In addition to the New York listing, the company moved its domicile from Johannesburg to London where it could benefit from an improved credit rating. It earlier sold the last of its South African gold mines.
The moves were thought at the time to cost about $500m. Since then, however, AngloGold has seen a major rating improvement, though it’s debatable whether the greater portion of the credit for this is due to its improved control over cash costs, as well as the gold price.
Shares in AngloGold have increased about 149% since it started trading in New York (September 2023). In comparison, Gold Fields has gained 98% and the benchmark Van Eck Gold Miners ETF 78% over the same period.
AngloGold generated $403m in first quarter free cash flow. First quarter earnings increased 671% year-on-year to $447m. Basic earnings were $443m, a 664% lift over 2024.
