AngloGold Ashanti plays down merger prospects amid deal talk
South Africa’s AngloGold Ashanti does not need to pursue mergers and won’t add scale for its own sake, its interim chief executive said, tamping speculation it could take part in further consolidation of the sector.
Sibanye-Stillwater CEO Neal Froneman this month floated the idea of a merger with peers AngloGold and Gold Fields, arguing consolidation is needed for South Africa’s gold miners to compete globally.
Interim CEO Christine Ramon declined to comment directly when asked about a potential tie-up with Gold Fields during a roundtable at the Mining Indaba Virtual Investment Programme alongside Froneman and Barrick Gold head Mark Bristow, reports Reuters.
Consolidation can bring benefits including operational synergies, but can also add complexity and costs, she said.
“I think bigger doesn’t necessarily mean better,” she said. “We wouldn’t look to build scale just for the sake of it.”
Ramon, who replaced Kelvin Dushinsky at the helm of AngloGold last year on an interim basis, said the miner is focused on developing its own assets and has the support of investors.
“For us it’s far more important not to get distracted,” she said.
Sibanye, which started out as a pure gold producer, became the world's largest platinum miner with its 2019 takeover of London-listed rival Lonmin.
Gold Fields is a globally diversified gold producer with nine operating mines in Australia, Peru, South Africa and West Africa (including the Asanko JV), as well as one project in Chile.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.