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Unnamed player eyes AngloGold’s Mali mines

10th April 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Dual-listed gold miner AngloGold Ashanti last week said an unnamed company had shown interest in the buy-out of the gold miner’s stakes in its joint venture (JV) mines in Mali.

AngloGold Ashanti aimed to dispose of its 41% stake in Sadiola and its 40% stake in Yatela – both JV operations with Canadian miner Iamgold –
which produced respective output of 85 000 oz and 11 000 oz of attributable gold in 2014.

“AngloGold Ashanti confirms that it has been approached by a potential buyer who meets its quali- fying criteria and a binding bid has been requested,” AngloGold Ashanti CEO Srinivasan Venkatakrishnan said in an update to shareholders.

The move was in line with the gold major’s strategy of simplifying and improving the overall quality of its portfolio, while reducing its net debt levels and improving cash flow generation over the next two to three years.

The gold miner was also seeking a JV partner or buyer for its Cripple Creek and Victor surface mining operations, in the US.

The mine, which produced 211 000 oz of gold in 2014, was currently implementing its second life extension and production expansion project to increase production from 2015.

“AngloGold Ashanti 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 lossmaking ounces from ongoing operations,” Venkatakrishnan commented.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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