Newmont Reportedly Negotiates With Anglogold Over Gold Mine
Jun 1 15
Newmont Mining Corporation (NYSE:NEM) is in exclusive talks with AngloGold Ashanti Ltd. (JSE:ANG) as it moves closer toward clinching a deal to buy AngloGold's Cripple Creek & Victor gold mine in Colorado, according to two sources familiar with the matter. A sale could be finalized soon, and the price for the gold asset is likely to be well below the $1 billion that was initially speculated on by analysts, said the sources, who asked not to be named as they are not authorized to discuss the matter publicly. The sources said that if AngloGold agrees to a sale, the asset is likely to fetch a price somewhere in the $700 million to $800 million range. One source said that the divestiture process, which is being led by BMO Capital Markets, may still result in the partial sale and not an outright sale of the entire asset. Newmont and BMO declined to comment on the matter and AngloGold could not be reached for comment, Reuters reported.
Anglogold Ashanti Ltd. Reports Production and Earnings Results for the First Quarter Ended March 31, 2015; Provides Production Guidance for the Second Quarter of 2015 and Production and Capital Expenditure Guidance for Full Year of 2015
May 11 15
AngloGold Ashanti Ltd. reported production and earnings results for the first quarter ended March 31, 2015. Production was 969,000oz at total cash cost of $744/oz in the three months through March 31, 2015, down from 1.055Moz at $770/oz in the first quarter of last year. Production was affected by a slow start in South Africa after the Christmas break, the sale of the Navachab mine last year as well as the transition of Obuasi to limited operations phase in December. The result compared with guidance of 900,000oz to 940,000oz at $830/oz to $860/oz/oz. AISC improved from $993/oz to $926/oz, while all-in-costs decreased by 8% from $1,114/oz to $1,026/oz over the same period.
First-quarter adjusted headline earnings (AHE) were $35 million, or 9 cents per share in the three months to 31 March 2015, compared with $119 million, or 29 cents per share, in the first quarter of 2014, impacted by lower ounces sold from Ghana, Namibia and South Africa, the lower gold price and a higher tax charge. An adjusted headline loss of $117 million, or 29 cents per share, was recorded the previous quarter. Adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) were $409 million, compared with $476 million in the first quarter of 2014, with the reduction due mainly to the 6% reduction in the gold price received and a 9% reduction in ounces sold. However, adjusted EBITDA was higher than the previous quarter's $407 million, given the lower costs quarter-on-quarter which helped offset lower output from the South Africa region. Revenue was $1,122 million against $1,359 million a year ago. Operating profit was $142 million against $229 million a year ago. Profit before taxation was $64 million against $107 million a year ago. Loss attributable to equity holders of the company was $1 million against income of $39 million a year ago. Net cash inflow from operating activities was $190 million against $350 million a year ago. Capital expenditure was $168 million against $220 million a year ago. Net debt was $3.150 billion at the end of the first quarter of 2015 compared to $3.095 billion same quarter last year and $3.133 billion in the previous quarter. Free cash flow before financing cost was $20 million compared to $87 million last year. The big swing in free cash flow from last year was due to the negative impact of the $73 per ounce lower gold price as well as working capital movements and equity investments due to the lag in the timing of dividends received.
Production guidance for the second quarter is estimated to be between 960,000oz to 1,000,000oz at total cash costs of $770/oz to $820/oz.
The annual guidance remains unchanged for production at 4.0moz to 4.3moz total cash costs at $770/oz to $820/oz and All-in sustaining costs of $1,000/oz-$1,050/oz, while the average oil price for the year is assumed at $70/bl. Capital expenditure guidance for the year also remains unchanged at $1.0 billion to 1.1 billion.
AngloGold Ashanti Ltd. Approves Amendments to the Memorandum of Incorporation
May 6 15
AngloGold Ashanti Ltd. announced at the AGM held on May 6, 2015, it has approved amendments to the company's memorandum of incorporation.