AngloGold Ashanti

AngloGold Ashanti Limited is a global gold mining company. It was formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation. It is now a global gold producer with 21 operations on four continents. The company is listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses.

AngloGold Ashanti Limited
TypePublic company
JSE: ANG
NYSE: AU
ASX: AGG
IndustryMining
Founded2004 (2004)
(by merger with Henderson Group)
Headquarters
Johannesburg
,
South Africa
Area served
Worldwide
Key people
Maria Ramos
(chairman of the board)
Christine Ramon
(Interim CEO)
ProductsGold
Silver
Uranium oxide
Revenue US$5.334 billion (2010)
US$0.518 billion (2010)
US$0.076 billion (2010)
Total assets US$9.532 billion (2010)
Total equity US$3.989 billion (2010)
Number of employees
62,046 – June 2011
Websitewww.anglogoldashanti.com

In 2008, AngloGold produced 4.98 million ounces of gold from its operations, estimated to be seven percent of the global production. In 2009, the company's gold output dropped to 4.6 million ounces.[1] As of the third quarter of 2014, Anglogold was the world's third-largest producer of gold, behind Barrick Gold and Newmont Mining.[2]

History

AngloGold Ashanti was formed on 26 April 2004, after the High Court of Ghana approved the merger of AngloGold and the Ashanti Goldfields Corporation three days earlier.[3] AngoGold had been a gold mining company based in South Africa, majority-owned by the Anglo American group. This came almost a year after the merger was announced on 16 May 2003. In the transaction, Ashanti shareholders received 0.29 ordinary shares of AngloGold for every Ashanti share.[4]

The new company sold its Union Reef Gold Mine in the Northern Territory of Australia in August 2004, followed by the sale of the Freda-Rebecca Gold Mine in Zimbabwe a month later.[4]

In late 2007, Mark Cutifani replaced Bobby Godsell as CEO of AngloGold Ashanti, being appointed a director of the company on 17 September 2007 and as CEO on 1 October that year.[5]

In January 2009, AngloGold Ashanti sold its 33% stake in the Boddington Gold Mine in Australia to Newmont Mining for US$1.0 billion.[6]

Russell Edey, chairman of AngloGold since 2002 and, after the merger also of AngloGold Ashanti, was replaced by Tito Mboweni in May 2010.[7] The company's Tau Lekoa Gold Mine in South Africa was sold to Buffelsfontein Gold Mines Limited in February 2009, with ownership being transferred on 1 August 2010.[8]

The company announced the elimination of the last of its hedge book in October 2010. The company had hedged 11.3 million ounces of gold, as of early 2008, under previous CEO Bobby Godsell. Under its new CEO, this was gradually reduced to 3.22 million. In October 2010, this remaining amount was paid off with US$2.63 billion, or US$1,300 per ounce of gold.[9]

In 2020 it sold its last South African mining assets to Harmony Gold for about R4.4 billion. It no longer has any operations left in South Africa but remains listed on the JSE.[10]

AngloGold Ashanti is a signatory participant of the Voluntary Principles on Security and Human Rights.

Chief Financial Officer Christine Ramon becomes interim CEO on 1 September 2020, following the resignation of Kelvin Dushnisky.[11] There has been speculation that Dushnisky stepped down after shareholders questioned a bonus payment he received from his prior employer Barrick Gold while also taking a signing bonus from AngloGold Ashanti when he was appointed CEO in 2018.[12]

Criticism

In August 2008 British charity War on Want published a report accusing Anglo American (who at the time owned 17% of AngloGold Ashanti) of profiting from the abuse of people in the developing countries in which the company operates.[13] The company disclosed itself in 2006 or in 2008 for unacceptable safety performance in its platinum mines. Safety measures were taken.[14] Additionally, in 2005 the staff of the AGA exploration team in Ituri made a US$8,000 payment to the FNI, which had been accused of committing various humans rights abuses.[15]

In January 2011, AngloGold Ashanti was awarded the Public Eye Global Award at the Public Eye Awards hosted with Greenpeace in Davos, Switzerland by the Erklärung von Bern, known in English as the Berne Convention.[16] The award has been interpreted as being for the "most irresponsible company".[17] The nominating organisation, WACAM (Wassa Association of Communities Affected by Mining), said the company had a history of "gross human rights violations and environmental problems."

Key figures

Financial

Financial figures for the company:[1][4]

2004 2005 2006 2007 2008[1] 2009[1] 2010[18] 2011[19] 2012[20]
Revenue (US$ million) 3,113 3,743 3,961
Gold income (US$ million) 2,393 2,646 3,002 3,619 3,768 5,334 6,570 6,353
Gross loss/profit (US$ million) 109 277 −248 594 −578 1,082 2,623 2,256
Dividends per share (US$ cents) 56 36 62 19 11 17 20 49 36
Total cash cost (US$/ounce) 264 281 308 357 444 514 638 728 862
Total production cost (US$/ounce) 332 374 414 476 567 646 816 950 1,078
Employees 65,400 63,993 61,453 61,522 62,895 63,364 62,046 61,242 65,822

Gold production

Gold production figures for the company's mines since 2004 in ounces per annum were

Mine Country 2004[4] 2005[4] 2006[21] 2007[1] 2008[1] 2009[1] 2010[18] 2011[19] 2012[20]
Bibiani 1 Ghana 105,000 115,000 37,000 --- --- --- ---
Brasil Mineração Brazil 240,000 250,000 242,000 317,000 320,000 329,000
Cerro Vanguardia (92.5%) Argentina 211,000 211,000 215,000 204,000 154,000 192,000
Cripple Creek & Victor United States 329,030 329,625 283,486 282,000 258,000 218,000
Freda-Rebecca 3 Zimbabwe 9,000 --- --- --- --- --- ---
Geita Tanzania 570,000 613,000 308,000 327,000 264,000 272,000
Great Noligwa South Africa 795,000 693,000 615,000 483,000 330,000 158,000
Iduapriem Ghana 125,000 174,000 167,000 167,000 200,000 190,000
Kopanang South Africa 486,000 482,000 446,000 418,000 362,000 336,000
Moab Khotsong 2 South Africa --- --- 44,000 67,000 192,000 247,000
Morila (40%) Mali 204,000 262,000 207,000 180,000 170,000 137,000
Mponeng South Africa 438,000 512,000 596,000 587,000 600,000 520,000
Navachab Namibia 67,000 81,000 86,000 80,000 68,000 65,000
Obuasi Ghana 255,000 391,000 387,000 360,000 357,000 381,000
Sadiola (41%) Mali 174,000 168,000 190,000 140,000 172,000 135,000
Savuka South Africa 158,000 126,000 89,000 73,000 66,000 30,000
Serra Grande (50%) Brazil 94,000 96,000 97,000 91,000 87,000 77,000
Siguiri (85%) Guinea 83,000 246,000 256,000 280,000 333,000 316,000
Sunrise Dam Australia 410,000 455,000 465,000 600,000 433,000 401,000
Tau Lekoa 4 South Africa 293,000 265,000 176,000 165,000 143,000 124,000
TauTona South Africa 568,000 502,000 474,000 409,000 314,000 218,000
Surface Operations South Africa 119,000 95,000 113,000 125,000 92,000 164,000
Yatela (40%) Mali 97,000 98,000 141,000 120,000 66,000 89,000
Overall[22] World 5,816,000 6,166,000 5,635,000 5,480,000 4,982,000 4,599,000
  • Figures for 2004 for Freda-Rebecca, Siguiri, Bibiani, Iduapriem and Obuasi are for the period from May to December, from the merger onwards, having belonged to Ashanti Goldfields Corporation before the merger.
  • Percentage figures behind names indicate the share of production of the mine belonging to AngloGold Ashanti. Production figures shown are those belonging to AngloGold Ashanti, not overall production.
  • 1 The Bibiani Gold Mine was sold 1 December 2006.
  • 2 The Moab Khotsong Gold Mine started production in 2006.
  • 3 The Freda-Rebecca Gold Mine was sold 1 September 2004.
  • 4 The Tau Lekoa Gold Mine was sold to Buffelsfontein Gold Mines Limited, with ownership being transferred on 1 August 2010.

Fatalities

Fatalities in the South African gold mining industry, especially the underground mines, are common. As of 2009, 100 to 120 were reported every year. This did represent an improvement since 2007: AngloGold Ashanti has reduced the number of fatalities in its operations by 70%. One of the main reasons for this development was a program led by CEO Mark Cutifani aimed at reducing the company's number of fatalities to zero by 2015.[23] Of the 16 fatalities experienced by the company in 2009, 13 were in South Africa (2007: 27 of 34, 2008: 11 of 14).[1] Statistics company fatalities since 2004 founding:

Year Number Change
2004[4] 31 new company
2005[4] 25 6%
2006[21] 37 48%
2007[24] 34 8%
2008[1] 14 57%
2009[1] 16 14%
2010 [18] 15 16%
2011 [19] 15
2012 [20] 18 14%

See also

References
  1. Annual Report 2009 Archived 12 September 2011 at the Wayback Machine AngloGold Ashanti website, accessed: 9 May 2010
  2. Simon Walker, "Gold: new fundamentals, Engineering & Mining Journal, Feb. 2015, v.216 n.2 p.34
  3. Completion of merger of Anglogold Limited/Ashanti Goldfields Archived 16 June 2012 at the Wayback Machine AngloGold Ashanti ASX announcement, published: 27 April 2004, accessed: 10 July 2010
  4. Annual Report 2005 Archived 19 July 2011 at the Wayback Machine AngloGold Ashanti website, accessed: 11 July 2010
  5. Our executive team Archived 29 August 2010 at the Wayback Machine AngloGold Ashanti website, accessed: 9 July 2010
  6. Newmont's $1.4bn stake in soon-to-start Boddington mine The Australian, published: 29 January 2009, accessed: 14 July 2010
  7. Chairman’s letter Archived 5 April 2010 at the Wayback Machine AngloGold Ashanti website, accessed: 10 July 2010
  8. Tau Lekoa – finalisation of sale Archived 28 July 2010 at the Wayback Machine AngloGold Ashanti website, published: 21 July 2010, accessed: 27 July 2010
  9. AngloGold Ashanti eliminates hedge book, gains full exposure to gold Archived 4 September 2011 at the Wayback Machine AGA website, published: 7 October 2010, accessed: 8 October 2010
  10. Seccombe, Allan (12 February 2020). "End of an era as AngloGold exits SA". BL Premium. Business Day. Retrieved 13 February 2020.
  11. "AngloGold Ashanti CEO Dushnisky steps down after two years in the role". Reuters. 30 July 2020.
  12. Njini, Felix; Prinsloo, Loni; Biesheuvel, Thomas (31 July 2020). "World's No. 3 Gold Miner CEO to Leave After Fund Pressure". Bloomberg.
  13. "Anglo American: The Alternative Report".
  14. "#7 Cynthia Carroll - Forbes.com". www.forbes.com. Retrieved 5 December 2019.
  15. "Doing business with integrity: the experience of AngloGold Ashanti in the Democratic Republic of Congo". International Social Science Journal. 57.
  16. Eye, Public. "Neste Oil and AngloGold in the Public Eye Pillory in Davos – Public Eye". www.publiceye.ch. Retrieved 20 April 2018.
  17. The Enquirer (30 January 2011). "AngloGold Is World's Most Evil Company". ghanaweb.com. Ghana Web. Retrieved 20 April 2018.
  18. "Annual Financial Statements 2010" (PDF). AngloGold Ashanti. Retrieved 31 August 2013.
  19. Annual Report 2011 AngloGold Ashanti website, accessed: 30 dec '12
  20. "Annual Financial Statements 2012" (PDF). AngloGold Ashanti. Retrieved 31 August 2013.
  21. Annual Report 2006 Archived 7 July 2011 at the Wayback Machine AngloGold Ashanti website, accessed: 11 July 2010
  22. Five-year summaries Archived 12 September 2011 at the Wayback Machine AngloGold website, accessed: 10 July 2010
  23. AngloGold wants zero mine deaths by 2015 The Sydney Morning Herald, published: 29 March 2010, accessed: 9 July 2010
  24. Annual Report 2007 AngloGold Ashanti website, accessed: 13 July 2010

Sources
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