AngloGold Closes Chapter on South African concession
What’s in the news?
AngloGold Ashanti is looking to exit its South Africa concession as it plans to sell its South African assets on 21st February 2020. The Chief Executive Officer, Kelvin Dushnisky, in an interview at the 2020 Indaba Mining Conference, announced that the aforementioned company will provide an update on the sale of its South African assets. The CEO had said a deal for Mponeng, the world’s deepest mine, and some surface operations may be concluded in the first or second quarter of this year.
As AngloGold exits South Africa, the company will also consider moving its primary listing from Johannesburg, the CEO said. Analysts say that shifting to Toronto or London would narrow the discount that AngloGold shares trade to larger rivals such as Barrick Gold. “If there is an opportunity to create more value, obtain a re-rating in changing primary listing and indexation, then clearly that’s something we need to consider,” Dushnisky said. “The preferred destination will be wherever we can create the most value,” he added.
What’s next for AngloGold?
The world’s number three gold producer is studying projects in Colombia and Nevada. “The market will always be receptive to good projects, and these are quality assets,” Mr Dushnisky said. “The reason we want to bring them into production is part of our objective to bring in new, longer life, lower-cost operations.” Since taking over and being at the helm of affairs at AngloGold in September 2018, Mr Dushnisky has sold the company’s mine in Mali and is seeking a buyer for its last South African operations.
However, he said Africa will remain a key part of the business, including Ghana’s Obuasi mine, but not the iconic Witwatersrand basin. In Colombia, AngloGold is conducting studies at Quebradona and Gramalote, the latter with joint owner B2Gold.