Home » Bear Case Scenario » Bear Case Scenario Anglogold Ashanti $AU, $GLD, $ABX, $NEM, $GG, $GFI, $KGC, $OPYGY

Bear Case Scenario Anglogold Ashanti $AU, $GLD, $ABX, $NEM, $GG, $GFI, $KGC, $OPYGY

AngloGold Ashanti (NYSE:AU) is about to release earnings. Ponder this Bear Case Scenario:

The firm owns many high cost legacy Gold Mines. So far no out of the box thinking has come along to leap-frog over the olde ways. What is needed is something similar to the revolution that Fracking brought to shale gas and oil.

Many of their mines are in geo-politically unstable and or corrupt  locations. Frequently both. Lots of sudden extra expenses for consultants come out of nowhere.

Gold miners need to offer something extra special or investors will just stay with the metal directly  and avoid any management or operating issues. Not sure what AU is offering that is special.

George Gutowski writes from a caveat emptor perspective.

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