UPDATE: HSBC Upgrades AngloGold Ashanti Limited Following Gold Production Announcements

In a report published Monday, HSBC Global Research analyst Patrick Chidley upgraded the rating on

from Underweight to Neutral, and reiterated the $13.80 price target. In the report, HSBC Global Research noted, “We forecast Q3 loss of USD0.02 per share vs. HEPS of USD0.29 in the previous quarter, as higher production of 988koz, up 6% at cash costs of USD857/oz, down 4% q-o-q, is offset by a 6% fall in the gold price. AngloGold announced first gold production at Tropicana and Kibali ahead of schedule and on budget. We view this as positive as the projects ramp-up towards full production by end-2014 and make significant contributions to cash flows due to their lower-than-average cost profile and reducing capex commitment.” AngloGold Ashanti Limited closed on Friday at $14.80.