Ghana’s gold producer, AngloGold Ashanti to exit South Africa, here's why

Ghana’s gold producer, AngloGold Ashanti to exit South Africa, here's why

Ghana’s gold producer, AngloGold Ashanti has said that it will exit its South African concessions.
   
   
   
       
       
           
               
                   

Ghana’s gold producer, AngloGold Ashanti has said that it will exit its South African concessions.

               
           
               
                   

The company added that it will, hence, sell its South African assets on 21 February 2020.

               
           
               
                   

The Chief Executive Officer (CEO) of the company, Kelvin Dushnisky said this in an interview at the 2020 Indaba Mining Conference.

               
           
               
                   

According to him, 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.

               
           
               
                   

He, hence, said the company will provide an update on the sale of its South African assets.

               
           
               
                   

As AngloGold exits South Africa, the company will also consider moving its primary listing from Johannesburg, the CEO said.

               
           
               
                   

“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.

               
           
               
                   

Adding that “The preferred destination will be wherever we can create the most value.”

               
           
               
                   

AngloGold Ashanti, a company that emerged from the South African mining empire created by Ernest Oppenheimer, is pivoting toward the Americas to develop more profitable assets.

               
           
               
                   

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, adding that “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 the helm of 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.

               
           
               
                   

He, however, said Africa will remain a key part of the business, including through 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.

Source: Ghana’s gold producer, AngloGold Ashanti to exit South Africa, here's why

- gist culled from pulseng