Back to top

Image: Bigstock

AngloGold Ashanti Gains Jersey Court Approval for Centamin Buyout

Read MoreHide Full Article

AngloGold Ashanti plc (AU - Free Report) received Jersey court clearance for the acquisition of Centamin PLC. The approval brings AngloGold Ashanti's acquisition of Centamin's issued share capital to completion.

Details of AngloGold Ashanti-Centamin Deal

On Sept. 11, 2024, AngloGold Ashanti announced that it entered an agreement to acquire Egyptian gold producer Centamin. The deal, valued at £1.9 billion ($2.5 billion), will add a large-scale, long-life, world-class Tier 1 asset (Sukari) to AngloGold Ashanti’s portfolio.

On Oct. 28, 2024, Centamin shareholders approved the scheme document outlining the acquisition terms. Trading of Centamin's shares on the London and Toronto stock exchanges ceased on Nov. 21 and Nov. 20, 2024, respectively. The deal was closed on Nov. 22, 2024, following court order registration.

Centamin’s flagship asset is the Sukari gold mine in the promising Arabian Nubian Shield. It is Egypt’s first large-scale modern mine. Sukari began production in 2009, with commercial production starting in 2010. It has produced more than 5.9 million ounces of gold since 2009.

It will be a strategic fit within AngloGold Ashanti’s existing portfolio of world-class assets and projects. AU’s expertise in operating similar mines, such as Geita in Tanzania, will help maximize the value of the Sukari mine. With this addition, the proportion of gold production from its Tier 1 assets will move up from 62% to 67%.

AU’s Benefits From the Transaction

AngloGold Ashanti’s annual gold production was 2.6 million ounces in fiscal 2023. With the addition of Sukari, the annual gold production will reach 3 million ounces. It will also lead to lower combined unit total cash costs and all-in-sustaining costs.

The transaction will be accretive to AngloGold Ashanti’s cash flow per share in the first year of completion of the deal.  By leveraging its existing capabilities and expertise, asset optimization program and global scale, the company expects to deliver additional upside and optimization opportunities.

AngloGold Ashanti Stock’s Price Performance

Shares of the company have gained 46.6% in the past year compared with the industry’s 34% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

AU’s Zacks Rank & Stocks to Consider

AU currently has a Zacks Rank #4 (Sell). 

Some better-ranked stocks from the basic materials space are CF Industries Inc. (CF - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and IAMGOLD Corporation (IAG - Free Report) . CF and CRS sport a Zacks Rank #1 (Strong Buy) at present, and IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF shares gained 15.8% in the last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.44 per share. The consensus estimate for 2025 earnings has moved 6% north in the past 60 days. Its shares gained 164.9% in the last year.

IAMGOLD has an average trailing four-quarter earnings surprise of 203.1%. The Zacks Consensus Estimate for IAG’s 2024 earnings is pegged at 56 cents per share. The consensus estimate for 2024 earnings has moved 24% north in the past 60 days. Its shares gained 127.5% in the last year.

Published in