Deals
AngloGold Faces South Africa Doubt as M&A Gold Rush Quickens
- Selling South African asset could result in re-rating of stock
- Still, CEO says positive cash flow could change perceptions
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Two decades ago, Anglo American Plc created the world’s No. 1 gold miner by merging its South African assets. Having long since been eclipsed by its rivals, AngloGold Ashanti Ltd. may need to leave home to keep up.
Newmont Mining Corp. and Barrick Gold Corp. have forged mega deals that will extend their lead over AngloGold. Saddled with Mponeng, the world’s deepest mine in a dying South African industry that’s struggling to contain costs, the third-biggest producer could boost its value by leaving the country, according to Rene Hochreiter, analyst at Noah Capital Markets Ltd. in Johannesburg.