The Daily Chase: AngloGold Ashanti acquires Augusta Gold

Bloomberg
07-16

Here are four things you need to know this morning

Here are four things you need to know this morning

Gold deal: We have yet another takeover in the precious metals space. AngloGold Ashanti has offered to buy Toronto-listed Augusta Gold for $1.70 per share in a cash deal valued at about $197 million. That’s a premium of almost 30 per cent to Tuesday’sclose. Augusta is developing gold projects in Nevada, U.S.

Silver screens well: Citigroup says silver will extend its rally beyond US$40 an ounce in the coming months on tightening physical supplies and growing investment demand but the bank is still cautious on gold. Citi analysts warn that the peak may be in for gold and that the precious metal will drop below US$3,000 next year, down from just over $3,340 today.

Stocks turnaround: U.S. stock futures recovered from earlier losses, lifted by solid corporate earnings. Shares in Goldman Sachs and Bank of America rose in the premarket after the lenders posted record-setting trading revenues (trading juiced results in the latest quarter at Citi and JPMorgan too). Johnson & Johnson was higher after lifting its full-year forecast.

Bumpy start: Finally, the Wall Street Journal says a plan by the crypto industry to reinvent stock trading with blockchain technology is off to a bumpy start. The publisher says digital tokens designed to track popular stocks such as Amazon.com and Apple have deviated wildly from the price of the underlying shares. It added that Robinhood Markets is facing scrutiny from European regulators after it launched a token designed to track OpenAI, without getting permission from the artificial-intelligence startup.

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