(Bloomberg) -- AngloGold Ashanti Ltd. said it's started a process to sell its Cerro Vanguardia mine in Argentina as the No. 3 gold producer continues efforts to streamline its assets under new Chief Executive Officer Kelvin Dushnisky.
- AngloGold's so-called headline earnings jumped to $220 million last year from $27 million a year earlier, after it shut and sold higher-cost mines in South Africa.
Key Insights
- Another owner may be better placed to invest in extending the life of Cerro Vanguardia, the company said. AngloGold has already announced plans to exit the Sadiola mine in Mali as the company seeks to focus on its best operations. It will continue to assess other assets for sale, Dushnisky said Tuesday.
- While the global gold industry is abuzz with speculation after two huge deals, AngloGold said it will favor organic opportunities to create value over any acquisition options, citing its own valuation and internal growth prospects.
- AngloGold's under no pressure to decide whether to sell its remaining South African assets, which include the Mponeng mine, and is focused on its growth strategy rather than moving its listing, Dushnisky told reporters on a call. “We are really focused on what we have in front of us,” he said.
- In Tanzania, arbitration against the government's new mining laws has been suspended in favor of dialogue. The company has been in dispute with the government over its decision to double royalties and impose a series of other measures to increase its share of mining revenues.
Get More
- Key earnings figures here
- Statement here
Read More
- AngloGold Faces South Africa Doubt as M&A Gold Rush Quickens
- AngloGold Is Said to Weigh London Listing, South Africa Exit
- AngloGold Asset Streamlining to Start With Mali Mine Sale
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, Liezel Hill, Dylan Griffiths
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