Home / BUSINESS / AngloGold Ashanti exits SA, sells mines for US$297 million

AngloGold Ashanti exits SA, sells mines for US$297 million

AngloGold Ashanti has reached an agreement to sell its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited.

Consideration for the transaction is in cash and deferred payments with expected proceeds of around US$300 million, subject to subsequent performance, and with additional proceeds if the West Wits assets are developed below current infrastructure.

In a circular to investors, AngloGold said the sale is part of the process of streamlining AngloGold Ashanti’s portfolio, in line with its clear capital allocation framework, to create a more focused business with enhanced operating and financial metrics.

AngloGold Ashanti announced in May 2019 that it was undertaking a process to review sale options for the portfolio of assets, principally comprising the Mponeng underground mine, where further capital, necessary to extend the mine life was in competition with other, higher-return AngloGold Ashanti priorities; Mine Waste Solutions, the mine waste retreatment operation; and a surface rock dump processing business.

A rigorous nine-month sales process identified Harmony as the most suitable party to acquire these assets, given its financial capacity and proven technical capability in operating ultra-deep, hard-rock mining assets in South Africa.

“From the beginning of the process an objective has been to sell our SA assets to a strong, capable and responsible operator that will ensure their long-term sustainability; we believe that this transaction achieves that,” Kelvin Dushnisky, CEO of AngloGold Ashanti said.

“This sale helps deliver on our commitment to sharpen our management focus and capital allocation on the highest return investment options available to us”, he added.

AngloGold Ashanti said it will continue its work to position the company to deliver long-term value for stakeholders through performance, disciplined capital allocation, as demonstrated by this pro-active portfolio management, and ongoing review of all aspects of its corporate structure.

AngloGold Ashanti has 14 gold-producing operations in nine countries including Ghana.

Its mines include differing ore-body types, located in key gold-producing regions around the world.

AngloGold is listed on the Ghana Stock Exchange and presently trading at GHS37 per share.

Source: classfmonline.com

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