AngloGold Ashanti explained

AngloGold Ashanti Limited
Type:Public company
Traded As:
Foundation:
(by merger with Henderson Group)
Location City:Johannesburg
Location Country:South Africa
Key People:Maria Ramos
(chairman of the board)
Christine Ramon
(Interim CEO)
Area Served:Worldwide
Industry:Mining
Products:Gold
Silver
Uranium oxide
Revenue: US$4.400 billion (2020)
Operating Income: US$1.918 billion (2020)
Net Income: US$1.000 billion (2020)
Assets: US$9.532 billion (2020)
Equity: US$4.989 billion (2020)
Num Employees:70,000 – June 2020

AngloGold Ashanti Limited is an independent and global gold mining company with a diverse high-quality portfolio of cooperation, projects and exploration activities formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation.[1] As of 2022, it was a global gold producer with 21 operations on four continents, listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses,[2] [3] but left the Johannesburg exchange in 2023. As of May 2023, it was the world’s fourth-largest gold miner with assets in Ghana, Australia, the US and Argentina.

In 2019, the company was claimed to be the 'most sophisticated and technologically advanced' mining operations with strict adherence to safety regulations.[4] [5] [6]

AngloGold Ashanti has a history of gross human rights violations and causing grave environmental problems for which it won one of the Public Eye Awards.

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.[7] AngloGold 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.[8]

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.[8]

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.[9]

Alberto Calderon, Chief Executive Officer and Executive Director of AngloGold Ashanti. Appointed on (September 1, 2021-)[10] [11]

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.

As of early 2008, the company had hedged 11.3 million ounces of gold, under previous CEO Bobby Godsell.[12]

In January 2009, AngloGold Ashanti sold its 33% stake in the Boddington Gold Mine in Australia to Newmont Mining for US$1.0 billion.[13]

In February 2009, the company's Tau Lekoa Gold Mine in South Africa was sold to Buffelsfontein Gold Mines Limited with ownership being transferred on 1 August 2010.[14]

In May 2010, Russell Edey, chairman of AngloGold since 2002 and, after the merger also of AngloGold Ashanti, was replaced by Tito Mboweni.[15]

In October 2010, the company announced the elimination of the last of its hedge book. Under its new CEO, it gradually reduced the hedge 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.[12]

In 2011, AngloGold Ashanti moved into Eritrea to explore the Arabian-Nubian Shield for gold through a 50/50 joint venture set up in 2009 with Thani Dubai Mining.[16]

As of the third quarter of 2014, Anglogold was the world's third-largest producer of gold, behind Barrick Gold and Newmont Mining.[17]

As of 2019, the company was claimed to be the 'most sophisticated and technologically advanced' mining operations with strict adherence to safety regulations.[4]

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.[18]

On 1 September 2020, Chief Financial Officer Christine Ramon became interim CEO following the resignation of Kelvin Dushnisky.[19] 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.[20]

As of May 2023, AngloGold Ashanti was the world’s fourth-largest gold miner with assets in Ghana, Australia, the US and Argentina.[21]

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

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.[22] The company disclosed itself in 2006 or in 2008 for unacceptable safety performance in its platinum mines. Safety measures were taken.[23] 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.[24]

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.[25] The award has been interpreted as being for the "most irresponsible company".[26] 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."

Colombia's Truth Commission found AngloGold Ashanti responsible for financing paramilitary groups that murdered peasants and community leaders. The same company has been accused of destroying water sources and forcibly displacing thousands of people in the Cauca region.[27]

Key figures

Financial

Financial figures for the company:[8]

2004200520062007200820092010[28] 2011[29] 2012[30]
Revenue (US$ million)3,1133,7433,961
Gold income (US$ million)2,3932,6463,0023,6193,7685,3346,5706,353
Gross loss/profit (US$ million)109277−248594−5781,0822,6232,256
Dividends per share (US$ cents)563662191117204936
Total cash cost (US$/ounce)264281308357444514638728862
Total production cost (US$/ounce)3323744144765676468169501,078
Employees65,40063,99361,45361,52262,89563,36462,04661,24265,822

Gold production, 2004-2012

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

MineCountry200420052006[31] 2007[32] 20082009201020112012
Bibiani 1Ghana105,000115,00037,000------------
Brasil MineraçãoBrazil240,000250,000242,000317,000320,000329,000
Cerro Vanguardia (92.5%)Argentina211,000211,000215,000204,000154,000192,000
Freda-Rebecca 3Zimbabwe9,000------------------
GeitaTanzania570,000613,000308,000327,000264,000272,000
Great NoligwaSouth Africa795,000693,000615,000483,000330,000158,000
IduapriemGhana125,000174,000167,000167,000200,000190,000
KopanangSouth Africa486,000482,000446,000418,000362,000336,000
Moab Khotsong 2South Africa------44,00067,000192,000247,000
Morila (40%)Mali204,000262,000207,000180,000170,000137,000
MponengSouth Africa438,000512,000596,000587,000600,000520,000
NavachabNamibia67,00081,00086,00080,00068,00065,000
ObuasiGhana255,000391,000387,000360,000357,000381,000
Sadiola (41%)Mali174,000168,000190,000140,000172,000135,000
SavukaSouth Africa158,000126,00089,00073,00066,00030,000
Serra Grande (50%)Brazil94,00096,00097,00091,00087,00077,000
Siguiri (85%)Guinea83,000246,000256,000280,000333,000316,000
Sunrise DamAustralia410,000455,000465,000600,000433,000401,000
Tau Lekoa 4South Africa293,000265,000176,000165,000143,000124,000
TauTonaSouth Africa568,000502,000474,000409,000314,000218,000
Surface OperationsSouth Africa119,00095,000113,000125,00092,000164,000
Yatela (40%)Mali97,00098,000141,000120,00066,00089,000
Overall[33] World5,816,0006,166,0005,635,0005,480,0004,982,0004,599,000

Carbon footprint

AngloGold Ashanti reported Total CO2e emissions (Direct + Indirect) for 31 December 2019 at 2,570 Kt (-1/ y-o-y).[34]

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.[37] Of the 16 fatalities experienced by the company in 2009, 13 were in South Africa (2007: 27 of 34, 2008: 11 of 14). Statistics company fatalities since 2004 founding:

YearNumberChange
200431new company
2005256%
20063748%
2007[38] 348%
20081457%
20091614%
2010 1516%
2011 15
2012 1814%

See also

Sources

External links

Notes and References

  1. Web site: 2023-09-25 . AngloGold Ashanti . 2023-09-29 . AngloGold Ashanti . en-ZA.
  2. Web site: Amoh . Emmanuel Kwame . 2022-01-23 . Maxam's suspension will affect mining in Ghana - AGA Snr Manager . 2022-01-24 . 3NEWS.
  3. Web site: AngloGold Ashanti Ltd . 2023-09-29 . World Economic Forum . en.
  4. Web site: Two of three trapped miners in AngloGold Ashanti Obuasi mine found - MyJoyOnline.com . 2021-05-19 . www.myjoyonline.com . 19 May 2021 . en-US.
  5. Web site: Vision, mission, values . 2023-07-29 . AngloGold Ashanti . en-ZA.
  6. Web site: Our business model . 2023-07-29 . 2021 . en-US.
  7. http://www.asx.com.au/asxpdf/20040427/pdf/3lcm4sthtp2jz.pdf Completion of merger of Anglogold Limited/Ashanti Goldfields
  8. http://www.anglogoldashanti.co.za/subwebs/InformationForInvestors/AnnualReport05/report/pdf/ar_report_2005.pdf Annual Report 2005
  9. http://www.anglogold.com/About+our+business/ExecutiveTeam.htm Our executive team
  10. Web site: Leadership . 2023-07-29 . AngloGold Ashanti . en-ZA.
  11. Web site: 2021-07-24 . AngloGold Ashanti Board Appoints Alberto Calderon as CEO . 2023-07-29 . miningdigital.com . en.
  12. http://www.anglogoldashanti.com/Additional/Press/2010/20101007+AngloGold+Ashanti+eliminates+hedge+book.htm AngloGold Ashanti eliminates hedge book, gains full exposure to gold
  13. http://www.theaustralian.com.au/business/mining-energy/newmonts-14bn-stake-in-wa-mine/story-e6frg9df-1111118693349 Newmont's $1.4bn stake in soon-to-start Boddington mine
  14. http://www.anglogold.com/Additional/Press/2010/20100721+Tau+Lekoa+-+finalisation+of+sale.htm Tau Lekoa – finalisation of sale
  15. http://www.anglogoldashanti.com/subwebs/InformationForInvestors/Reports09/AnnualReport09/chairman_letter.htm Chairman’s letter
  16. News: 2011-05-12 . AngloGold moves into Eritrea . en-ZA . 2023-05-18 . 1 December 2020 . https://web.archive.org/web/20201201114323/https://www.miningreview.com/top-stories/anglogold-moves-into-eritrea/ . dead .
  17. Simon Walker, "Gold: new fundamentals, Engineering & Mining Journal, Feb. 2015, v.216 n.2 p.34
  18. News: Seccombe . Allan . End of an era as AngloGold exits SA . 13 February 2020 . BL Premium . Business Day . 12 February 2020.
  19. News: . AngloGold Ashanti CEO Dushnisky steps down after two years in the role. Reuters. 30 July 2020.
  20. News: Njini. Felix. Prinsloo. Loni. Biesheuvel. Thomas. 31 July 2020. World's No. 3 Gold Miner CEO to Leave After Fund Pressure. Bloomberg.
  21. Web site: 2023-05-18 . EDITORIAL: AngloGold Ashanti exit hits hard . 2023-05-18 . BusinessLIVE . en-ZA.
  22. Web site: Anglo American: The Alternative Report. 6 June 2016. 4 August 2016. https://web.archive.org/web/20160804143556/http://www.waronwant.org/media/mines-firm-profits-abuse-poor. dead.
  23. Web site:
    1. 7 Cynthia Carroll - Forbes.com
    . https://web.archive.org/web/20071011234217/http://www.forbes.com/lists/2007/11/biz-07women_Cynthia-Carroll_4PVY.html. dead. 11 October 2007. www.forbes.com. 2019-12-05.
  24. Kapelus . Paul . Hamann . Ralph . O'Keefe . Edward . May 2005 . Doing business with integrity: the experience of AngloGold Ashanti in the Democratic Republic of Congo * . International Social Science Journal . en . 3 June 2009 . 57 . 119–130 . 10.1111/j.1468-2451.2009.00711.x.
  25. Web site: Eye. Public. Neste Oil and AngloGold in the Public Eye Pillory in Davos – Public Eye. www.publiceye.ch. 20 April 2018.
  26. News: The Enquirer. AngloGold Is World's Most Evil Company. 20 April 2018. ghanaweb.com. Ghana Web. 30 January 2011. en.
  27. Web site: Anglo Gold Ashanti: La minera que amenaza con tragarse a Jericó.
  28. Web site: Annual Financial Statements 2010 . AngloGold Ashanti . 31 August 2013 .
  29. http://www.aga-reports.com/11/download/AGA-annual-integrated-report-2011.pdf Annual Report 2011
  30. Web site: Annual Financial Statements 2012 . AngloGold Ashanti . 31 August 2013 . 6 March 2015 . https://web.archive.org/web/20150306075456/http://www.aga-reports.com/12/download/AGA-annual-integrated-report-2012.pdf . dead .
  31. http://www.anglogold.com/NR/rdonlyres/5F4B53A4-2DE4-43EC-87AB-BDB13F5C8C1F/0/ar_report_2006.pdf Annual Report 2006
  32. http://www.anglogoldashanti.com/subwebs/InformationForInvestors/Reports09/AnnualReport09/f/AGA_AR09.pdf Annual Report 2009
  33. http://www.anglogoldashanti.com/subwebs/InformationForInvestors/Reports09/AnnualReport09/five_year_summaries.htm Five-year summaries
  34. Web site: AngloGold Ashanti's Sustainability Report for 2020Q4 . https://web.archive.org/web/20210606190052/https://www.aga-reports.com/20/download/AGA-SR20-workbook.xls . June 6, 2021 . Alt URL
  35. Web site: AngloGold Ashanti's Sustainability Report for 2020Q4 . https://web.archive.org/web/20210606190052/https://www.aga-reports.com/20/download/AGA-SR20-workbook.xls . June 6, 2021 . Alt URL
  36. Web site: AngloGold Ashanti's Sustainability Report for 2020Q4 . https://web.archive.org/web/20210606190052/https://www.aga-reports.com/20/download/AGA-SR20-workbook.xls . June 6, 2021 . Alt URL
  37. http://news.smh.com.au/breaking-news-business/anglogold-wants-zero-mine-deaths-by-2015-20100329-r7i2.html AngloGold wants zero mine deaths by 2015
  38. http://www.anglogold.com/NR/rdonlyres/A45B67B6-4D2F-49B3-B21E-CA6C2AA89630/0/AGA_afs_2007.pdf Annual Report 2007