AngloGold Ashanti announces $420m share capital increase on local bourse
AngloGold Ashanti (AGA) has announced a share capital increase of 420,090,173 on the Ghana Stock Exchange (GSE).
The nominal value per share of the 420,090,173 shares announced by the gold mining company is pegged at $1.
The nominal value of a share implies the minimal price a share would be sold for at the initial issuance stage, the price has no bearing on the real or market price (the price at which investors are willing to pay for the share) of the share, as it is mainly used for balance sheet purposes.
AGA already has over 419.11 million shares listed on the GSE with a share price of GHS 37 thereby translating into a market capitalization of over GHS 15.5 billion.
The gold mining company posted a negative earnings per share of GHS 6.26 at end-June 2023 with the company’s price-to-earnings ratio currently pegged below 0 (n.m.) which is an unfavourable indication of investors’ confidence in the company’s ability to grow its income stream in the near term.
According to the GSE, the new shares by AGA will be listed on the GSE in the coming days.
There’s a mistake with your article.
Anglogold Ashanti’s Share increased by 208,166 shares in March 2023 to 420,090,173 share. The total share capital for February was 420,090,173. therefore, the above statement is misleading and Anglogold Ashanti is not happy about it.
Your article means that Anglogold share is Ghana has increased by $420M, which is clearly not the case.