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    Leroy Mnguni

    Mining Equity Analyst at HSBC

    Leroy Mnguni is a Mining Equity Analyst at HSBC in Johannesburg, specializing in coverage of South African mining companies with a focus on gold and related resources. He has provided ratings and analyses for firms such as Harmony Gold Mining Company, AngloGold Ashanti, and Gold Fields, although his published analyst performance metrics indicate a 0% success rate and significant negative average returns, ranking near the bottom among peers. Mnguni has been with HSBC since at least 2023 and appears to have built his expertise in mining equities, regularly contributing to market commentary on South African mining sector developments. While specific credentials such as FINRA registration or securities licenses are not detailed in public records, his professional history demonstrates recognized sector specialization within a major global bank.

    Leroy Mnguni's questions to AngloGold Ashanti (AU) leadership

    Leroy Mnguni's questions to AngloGold Ashanti (AU) leadership • Q2 2024

    Question

    Leroy Mnguni of HSBC questioned the high effective tax rate, asked for clarification on non-recurring items in HEPS, and inquired if the successful Underhand Drift and Fill mining method could be applied more broadly at Obuasi.

    Answer

    CFO Gillian Doran clarified that the current tax rate is 32%, but a non-cash deferred tax adjustment in Brazil and Argentina inflates the effective rate. She identified a hedging loss and closure provisions in Brazil as the main one-off items impacting earnings. CEO Alberto Calderon added that the underhand method will be used in areas with difficult ground conditions, like parts of Block 10, but is not intended to fully replace other methods.

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    Leroy Mnguni's questions to AngloGold Ashanti (AU) leadership • H1 2024

    Question

    Leroy Mnguni of HSBC inquired about the drivers of the high effective tax rate, any non-recurring items impacting HEPS, the potential to expand the use of the Underhand Drift and Fill mining method at Obuasi, and the status of potential sales for the CdS and Serra Grande assets.

    Answer

    CFO Gillian Doran clarified the high tax rate was due to a $75 million non-cash deferred tax adjustment in Brazil and Argentina, with the current tax rate at 32%. She identified a hedging loss and Brazil closure provisions as one-offs affecting earnings. CEO Alberto Calderon stated the underhand method is for difficult ground conditions and that talks continue with a potential buyer for CdS. He noted Serra Grande is now cash-positive, reducing the urgency to sell, though a sale would be considered at a reasonable price after key liabilities are addressed.

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    Leroy Mnguni's questions to AngloGold Ashanti (AU) leadership • Q2 2024

    Question

    Leroy Mnguni of HSBC asked for an explanation of the high effective tax rate, inquired about any non-recurring items affecting headline earnings, and questioned if the successful underhand mining method at Obuasi could be applied more broadly. In a follow-up, he asked for updates on the potential sale of the CdS asset and the company's view on Serra Grande's future in a high gold price environment.

    Answer

    CFO Gillian Doran explained the high tax rate was due to a non-cash, non-earnings deferred tax adjustment in Brazil and Argentina, with the current tax rate at 32%. She identified a hedging loss and closure provisions as the main one-off items. CEO Alberto Calderon clarified the underhand method is for difficult ground conditions, with plans for its use in parts of Block 10. He also confirmed that discussions with a potential buyer for CdS are ongoing and that while Serra Grande is now cash-positive, it remains a non-core asset that could be sold for a reasonable offer after key environmental liabilities are addressed.

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    Leroy Mnguni's questions to HARMONY GOLD MINING CO (HMY) leadership

    Leroy Mnguni's questions to HARMONY GOLD MINING CO (HMY) leadership • H1 2023

    Question

    Leroy Mnguni from HSBC questioned the dividend policy, suggesting it deprioritizes shareholders, and asked if paying a dividend would lead to a higher valuation. He also inquired about Harmony's capacity to self-develop the Wafi-Golpu project if its partner were to sell its stake.

    Answer

    Financial Director Boipelo Lekubo defended the dividend policy as appropriate and benchmarked, emphasizing the board's responsibility to act in the company's best interest given future capital needs. CEO Peter Steenkamp addressed the Wafi-Golpu scenario, confirming Harmony's right of first refusal but noting it was premature to discuss valuation or development capacity, as any corporate action would take a long time to finalize.

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