HomeGoldAngloGold Ashanti Mali operations attract potential buyer

AngloGold Ashanti Mali operations attract potential buyer

AngloGold Ashanti Mali operation - Sadiola open pit mine
AngloGold Ashanti Mali operation – Sadiola open pit mine

Mali – AngloGold Ashanti Mali operations have attracted a potential buyer. The global gold mining house revealed yesterday it has received an approach for the purchase of its stakes in the Sadiola and Yatela mines in Mali.

AGA is pursuing a range of measures to simplify its portfolio, improve cash flow generation and reduce debt. These steps include plans to realise additional savings from current operations, capture synergies from combining neighbouring mines and infrastructure in South Africa, introduce partners in its Colombia business and enter into a joint venture or sell one of its operating assets.

In line with an objective to simplify and improve the overall quality of its portfolio, the company intends to dispose of its 41% stake in Sadiola and its 40% stake in Yatela, which produced 85 000 and 11 000 attributable ounces of gold respectively, in 2014.

AngloGold Ashanti Mali operation - earthmoving machines at Yatela
AngloGold Ashanti Mali operation – earthmoving machines at Yatela

AGA confirms that the potential buyer meets its qualifying criteria, and a binding bid has been requested.

There can be no assurance, however, that a sale and purchase agreement for these transactions will be entered into or that any sales transactions will be completed the company adds.

“As we have mentioned since the latter part of 2014, we will work actively to reduce our net debt levels over the next two to three years to provide the company with greater financial flexibility, but in doing so, we will not act in haste nor compromise long-term value,” says AGA CEO Srinivasan Venkatakrishnan.

Seeking a buyer/joint venture partner for United States mine

Additionally, AGA has also initiated a plan to identify a joint venture partner or buyer of its Cripple Creek & Victor (CC&V) mine in the United States.

CC&V is a surface mining operation which provides oxidised ore to a crusher and valley leach facility, one of the largest in the world. The mine produced 211 000 oz of gold in 2014. Production from the mine life extension (MLE1) project, which involved expanding capacity at the heap-leach pad, began in 2011.

A further life extension and production expansion project (MLE2), approved in 2012, is in implementation phase and is expected to increase production from 2015.

AGA has over the past 24 months taken decisive action to cut overhead expenditure by two-thirds while improving the quality of its portfolio by bringing into production two new, low-cost mines, selling some assets, closing others and removing loss-making ounces from ongoing operations. All-in sustaining costs for 2014 were 18% lower than in 2012, with further reductions forecast this year.

Top Stories:

Mining Charter: Once empowered, always empowered – or not?

Majors account for 40% of global mineral exploration budgets

Randgold Resources looks for stressed gold market opportunities