AngloGold Ashanti plans to shift its corporate domicile and primary listing away from South Africa.
AngloGold Ashanti said on Friday in its results for the quarter to March 31 that it was on track to meet its guidance for the year. However, after disposing of its remaining South African operating assets in 2020, it did a review of its domicile and listing structure.
“The review concluded that the most appropriate corporate structure for AngloGold Ashanti group is a UK corporate domicile with a US primary listing on the New York Stock Exchange and secondary listings on the JSE and A2X Markets in South Africa and the Ghana Stock Exchange in Ghana," it said.
The change in domicile and listing structure was aligned with the transformation of AngloGold Ashanti’s asset base into a diversified global portfolio of high-quality producing assets and projects, the group said Friday.
“The company has a long-standing and growing presence in the US and no longer has operating assets in South Africa. The proposed changes have a number of benefits that AngloGold Ashanti believes will help facilitate implementation of AngloGold Ashanti’s strategy and greater recognition of its full value,” it said.
Chairperson Maria Ramos said: “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.
“This proposed corporate structure, including a primary listing on the NYSE and a corporate domicile in the UK, will considerably enhance our position in the world’s largest capital markets, while keeping key functions in Johannesburg and a full inward listing on the JSE for our South African shareholders.”
CEO Alberto Calderon said: “We have been working on a number of fronts to unlock the significant potential that lies within – and beyond – our portfolio.
“The changes will complement work underway to reduce our cost of capital, enhance our cost competitiveness versus our peers and optimise our portfolio by providing improved access to the world’s largest capital markets and pool of gold investors,” he said.
Meanwhile, the group’s previously announced guidance of producing between 2.45 million and 2.61 million ounces remained unchanged by the end of the quarter.
The group estimated that 2024 production would grow by 4% compared to 2023.
It reported that production was consistent year-on-year at 584 000 ounces for the first quarter of 2023, with strong performances from the Obuasi and Iduapriem mines in Ghana, offset by lower production from Kibali, Siguiri, and the Brazilian operations.
In Brazil, the Cuiaba mine complex transitioned to producing gold from its gravity circuit and gold concentrate in line with expectations.
For the period, gold production totalled 584 000 ounces, down from 588 000 ounces. As a result, adjusted earnings before interest tax depreciation and amortisation (Ebitda) declined from $438 million (R8.5 billion) to $320m.
When Cuiaba is excluded, group production rose 2% in the first quarter compared with the first quarter of 2022.
Calderon said: “Operationally, the year has started as expected, with normal seasonal improvements to come in each of the remaining quarters as we work to meet our overall objectives for the year.”
Anchor Capital investment analyst Stephan Erasmus said according to AngloGold, its gold production and adjusted Ebitsa declined year over year in the first quarter.
“On June 27, ANG (AngloGold) will also delist from the Australian stock exchange. A primary listing in the US may improve access to capital pools and the liquidity of shares. As a result of a US primary listing, ANG expects higher stock performance and a higher share value than its more liquid, higher-valued North American peers. ANG’s move is estimated to cost around 5% of its market capitalisation, primarily to cover tax obligations in South Africa,” he said.
BUSINESS REPORT