AngloGold Ashanti Will Sell South African Assets to Harmony Gold
In May, AngloGold Ashanti announced it was undertaking a process to review sale options for the portfolio of assets. The sale is part of the process of streamlining AngloGold Ashanti’s portfolio to create a more focused business with enhanced operating and financial metrics, according to the company. A 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, the company said. “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,” CEO of AngloGold
Ashanti Kelvin Dushnisky 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.” AngloGold Ashanti has 14 gold-producing operations in nine countries. The transaction consideration comprises three elements: $200 million in cash payable at closing; and two components of deferred consideration that includes $260 per ounce payable on all underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) in excess of 250,000 ounces per year for six years starting January 1, 2021; and $20 per ounce payable on underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines).