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The world’s third-largest gold producer has initiated a process to sell Sadiola, one of its smallest operations, which it jointly owns with IAMGOLD Corp., Chief Executive Officer Kelvin Dushnisky, said on a conference call Monday. Sadiola, where AngloGold has been negotiating a new fiscal regime with the government, would “sit well in another portfolio”, Dushnisky said.
AngloGold plans to sell assets that aren’t core to the business and focus on areas with “critical mass and good geology” and where the company is able to drive down costs. The producer’s geographical spread with 14 assets “feels heavy” and it makes sense for the company to streamline, Dushnisky said.
- AngloGold’s output declined 15 percent to 851,000 ounces in the third quarter through Sept. 30 from a year earlier.
- Full-year production will likely be at top end of the forecast range of 3.3 million ounces to 3.5 million ounces.
- AngloGold secured a new $1.4 billion, multi-currency revolving credit facility with a syndicate of 14 banks to replace a facility of $1 billion and A$500 million in place since 2014.
- The producer slashed its net debt by 15 percent to $1.75 billion during the third quarter.
- Strong operational improvement from Mponeng, Kibali, Iduapriem and Tropicana mine.
- AngloGold has “no plans to exit” Mponeng, South Africa’s deepest gold mine. Mponeng’s deposit can still be exploited until 2036 and AngloGold “is in good shape there,” Dushnisky said.
- CEO also said he is positive about Tanzania despite uncertainty regarding the country’s new mining laws.