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InDABA ReVIeW

AngloGold marvels cessfully reducing its once massive debt
levels by almost 50% over the past seven
years.
With the company also recording its
best ever cash margins for operations,
at Obuasi restart Dushnisky said shareholders can expect
to see more funds being tipped into explo-
ration and development across its global
portfolio.
ngloGold Ashanti Ltd expects the revi- Based on current gold price levels, An- “In recent years our focus was main-
Atalised Obuasi gold mine in Ghana to gloGold will achieve payback of its circa ly on repairing the balance sheet; this
achieve its planned production rate of 4,000 $US500 million investment in Ghana within meant we prioritised debt reduction en-
tpd by the end of the year. five years, about 18 months quicker than tirely funded from internally generated
First gold was poured from Obuasi in indicated in the original feasibility studies. cash over investment in brownfield drill-
December, five years after AngloGold was “Obuasi is in a class of its own when it ing,” he said.
forced to suspend operations at what was comes to capital intensity,” Dushnisky said. “With the balance sheet now in excel-
then a loss-making mine. While successfully restarting Obuasi as lent shape and improving, we can shift
Upon achieving steady-state production, a modern mechanised mining operation is some of our emphasis and focus more
Obuasi is expected to churn out 350,000- top of AngloGold’s list of recent achieve- towards ore reserve development and
400,000 ozpa for the next 10 years. ments, Dushnisky said his company was reserve conversion at our existing sites.
A ceremony to commemorate the restart
of the iconic mine was held one week be-
fore AngloGold chief executive Kelvin Du- AngloGold Ashanti Ltd has officially exited South Africa after agree-
shnisky addressed delegates at Mining In- ing to sell the Mponeng mine and other surface assets to Harmony
daba in Cape Town. Ghana President Nana Gold Mining Company Ltd in a deal valued at around $US300 million.
Akafo-Addo was among the special guests Mponeng is the world’s deepest gold mine and requires an investment
at the official reopening. of at least $US1 billion to extend its life beyond eight years. Anglo-
“Producing first gold on time and on Gold started a formal process to offload its South African assets last
budget was a significant achievement for May when chief executive Kelvin Dushnisky announced the company
the company, the community at Obuasi and
for Ghana as a whole,” Dushnisky said at planned to focus its attention on regions where it could be guaranteed
Mining Indaba. better returns for shareholders. AngloGold also divested its interest
“It’s also a testament to the focused in the Sadiola mine in Mali last year to Allied Gold Corp. It has been
execution by our team on the ground. Im- speculated by some market commentators that the sale of its South
portantly, it reflects a clear investment African assets now paves the way for AngloGold to switch its primary
framework and the supportive environment listing from Johannesburg to London.
created by the Government of Ghana. We
were pleased President Nana Akafo-Addo
attended the opening ceremony with us last particularly proud of the contribution it This will improve our overall orebody con-
week. He spent the afternoon with us on had made to its host community and fidence, improve operating predictability
site and reiterated and reinforced Ghana’s country during that process. and extend mine lives.
strong support for the project. “When you step back, Obuasi is a shin- “We believe this disciplined investment
“Obuasi is our largest current investment ing example of how partnerships with in our assets will provide a material uplift
and we’re well on our way to capitalising on Government, a supportive investment to our valuation.”
this exceptional, high-grade orebody.” framework and focused execution can Elsewhere in Africa – AngloGold is the
AngloGold estimates 8.6 moz will be pro- create real positive change,” he said. continent’s largest gold producer – con-
duced from Obuasi over the next 20 years, “About 3,500 people have been em- struction of a combination plant to treat
with an average grade of 8.8 g/t gold to be ployed directly by us and through our both hard and soft ore to improve mine
treated through the refurbished mill. contractors during the construction pe- life and margins is being finalised at the
riod. To date, 96% Siguiri open pit operation in Guinea.
of those employees A new power plant is also being devel-
have been Ghana- oped at Geita in Tanzania where opera-
ian and importantly tions are transitioning underground.
about three-quarters Dushnisky said the company remained
of that have been committed to supporting JV partner Bar-
from the Obuasi rick Gold Corp at Kibali – Africa’s largest
area. At steady-state producing gold mine – in the DRC where
next year, about AngloGold’s average share is expected
2,250 people will be to be 340,000 ozpa at $US750/oz ASIC
employed between over the next few years.
ourselves and our AngloGold’s full-year earnings and
contractors.” guidance outlook were due to be an-
AngloGold’s re- nounced at the time of print.
start of Obuasi was
achieved on the back – Michael Washbourne
of the company suc-
Kelvin Dushnisky

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