AngloGold Ashanti to Move Primary Listing to US; Backs 2023 Guidance -- Update
12 May 2023 - 4:17PM
Dow Jones News
By Joe Hoppe
AngloGold Ashanti said Friday that it intends to move its
primary listing to New York alongside a corporate restructuring,
and backed its full-year guidance.
The South African gold miner said it has undertaken a
comprehensive review of its domicile and listing structure and
concluded the most appropriate structure is a U.K. corporate
domicile, with a U.S. primary listing and second listings in South
Africa and Ghana. It also expects to delist from the Australian
stock exchange on June 27.
A primary listing in the U.S. will enhance access to pools of
capital, including the opportunity to improve share liquidity. In
time, a U.S. primary listing is expected to facilitate greater
stock performance and bring share value comparable to more liquid,
higher valued North American peers, AngloGold said.
The restructuring will utilize a corporate domicile in the U.K.,
to be renamed AngloGold Ashanti PLC, which will ultimately hold all
of the company's operations outside of Africa. The company said the
U.K. was a well proven, low-risk and attractive jurisdiction for
the group, and will minimize incremental costs to shareholders.
The total costs of the proposed transaction are estimated to be
around 5% of the prevailing market capitalization of the company,
comprising primarily taxes payable in South Africa. This implies a
cost of around $571.5 million, based upon its market capitalization
at 0539 GMT of $11.43 billion, though the actual number will depend
on factors including company market value and foreign exchange
rates.
"This is a logical progression for AngloGold Ashanti, which is
well aligned with the evolution of the business in recent years and
will assist in unlocking value in a way that's minimally disruptive
for our stakeholders," Chairperson Maria Ramos said.
The mining company also said first quarter gold production was
584,000 ounces. Total cash costs rose to $1,204 an ounce from
$1,041, mainly driven by continued inflation and input price
increases, and adjusted earnings before interest, taxes,
depreciation and amortization fell to $320 million from $438
million a year prior it said.
AngloGold reaffirmed full-year guidance of 2.45 million-2.61
million ounces, with all-in sustaining cost guidance of
$1,405-$1,450 an ounce. It said production and costs are expected
to improve over the second half of the year.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
May 12, 2023 02:02 ET (06:02 GMT)
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