AngloGold Says It’s Assessing Bids for South African Asset Sales
AngloGold Says It’s Assessing Bids for South African Asset Sales
AngloGold Ashanti Ltd. said it has advanced its South African asset-sale process and is currently examining a number of bids from investors interested in buying its remaining mines in the country.
The no. 3 gold producer is on course to meet its production forecast this year of 3.25 million ounces to 3.45 million ounces this year and has advanced plans to restart operations at the Obuasi mine in Ghana that was previously overrun by illegal miners. The company is also engaging with prospective investors for the sale of two mines in Argentina and Mali, AngloGold said in a statement Monday.
Key Insights
- The sale of the remaining South African assets could complete AngloGold’s withdrawal from South Africa, allowing it to focus on more profitable operations in West Africa, Australia and South America. It would also allow the gold miner to potentially shift its primary listing away from Johannesburg to London or Toronto.
- AngloGold said it would update investors on South African asset sales by the end of the year. Investors are particularly keen to see the producer exit South Africa because that would remove a discount that AngloGold trades at to global peers such as Barrick Gold Corp.
- AngloGold said it’s on track to pour first gold at the Obuasi mine in Ghana by the end of the yearr. Chief Executive Officer Kelvin Dushnisky has called the Obuasi mine a “spectacular orebody.” AngloGold has made extraordinary progress to bring the mine back into production, Dushnisky said.
- Earnings before interest, tax, depreciation and amortization rose to $468 million in the third quarter ended Sept. 30 from $355 million a year earlier.
To contact the reporter on this story: Felix Njini in Johannesburg at fnjini@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Ana Monteiro
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