By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS (NABN), Freetown, Sierra Leone- AngloGold Ashanti Limited has sold its own remaining South African properties to Harmony Gold Mining Company, as the corporation quits the gold industry that established as Africa’s biggest economy.
Harmony will amass the Mponeng mine and ground assets for about US $300 million, according to Johannesburg based on Wednesday, February, 12th 2020 that’s tinier than half the book importance of the assets, according to Harmony, which will become South Africa’s number one gold producer.
The contract captions the duct from South Africa of AngloGold – a company that arose from a mining empire invented by Ernest Oppenheimer a century back. Heretofore, adopting the helm in September 2018, Chief Executive Officer – Kelvin Dushnisky has stridden to send the operations in Mali and Argentina as the producer concentrates on more fruitful mines in Ghana, Australia and the Americas.
“This sale helps deliver on our commitment to sharpen our management focus and capital allocation on the highest return investment options available to us,” Dushnisky noted.
The sale may also pave the way for AngloGold to move its primary listing from Johannesburg. Analysts say that shifting to Toronto or London would narrow the discount that AngloGold shares trade at to larger rivals such as Barrick Gold Corp. The South African gold industry is limited than a fifth of the quantity it was at its cliff and its prestige to the economy is pronto diminishing. It utilizes barely over 100,000 people and with many of the nation’s gold procedures of borderline profitability, extra job slashes are unavoidable.
Harmony, seconded by billionaire; Patrice Motsepe’s African Rainbow Minerals Limited has existed in hunting for deals to upgrade ebbing budgets and ratings at its South African mines. Harmony stated the accession will strengthen its production by about 350,000 ounces a year, while enhancing its South African stocks by 8.27 million ounces.
“Harmony has demonstrated its ability to increasing the life of mines it operates in South Africa – sustaining the mine communities surrounding the mining operations, preserving jobs and further unlocking value for its shareholders through increased grades and stronger margins,” CEO Peter Steenkamp said in a statement.
Harmony will acquire the assets with US $200 million of cash, plus deferred expenditures associated to the feat of the operations. The AngloGold assets had a book usefulness of 9.9 billion rand ($670 million) at the end of 2019, it remarked.
For New Africa Business News (NABN) Abdul Rahman Suagibu Reports, Africa Correspondent
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