Sukari Mine at the Heart of a $2.5 Billion Acquisition Deal Between AngloGold and Centamin
The boards of AngloGold Ashanti and Centamin have officially announced an agreement on the terms of the proposed acquisition of Centamin
Sukari Mine at the Heart of a $2.5 Billion Acquisition
Centamin is a major gold producer, and its Sukari Gold Mine (“Sukari”) is one of the company’s most significant Tier 1 assets, being the largest and first modern gold mine in Egypt, and one of the largest gold-producing mines globally
At the same time, the Sukari Mine aligns well with AngloGold Ashanti’s global portfolio of assets and projects, which believes the deal will strengthen its operational and financial capabilities
The addition of the Sukari Mine is expected to increase AngloGold Ashanti’s annual gold production by approximately 450,000 ounces, bringing the total to more than 3 million ounces for the twelve months ending December 31, 2023 (on a consolidated basis)
AngloGold Ashanti intends to apply its extensive operational expertise to Centamin’s portfolio, given its long-standing experience in large-scale open-pit and underground mining operations across Africa
AngloGold Ashanti also plans to invest in further exploration and development of the Sukari Mine, both within the Sukari concession area and in adjacent blocks associated with the EDEX project, which may either extend the mine’s lifespan or boost its production
As a responsible mining asset owner, AngloGold Ashanti is committed to supporting local communities through various initiatives and has a strong record of collaboration with host governments and communities, as well as an outstanding safety record in many of the countries and regions it operates in
Furthermore, AngloGold Ashanti highly values the skills, knowledge, and expertise of Centamin’s current employees and recognizes their role in the company’s success. Therefore, AngloGold Ashanti does not plan to make any changes that would affect the workforce at the Sukari Mine, nor does it intend to make any significant changes to Centamin’s employees in Egypt or Côte d’Ivoire
The acquisition offer for Centamin values its issued and to-be-issued shares at approximately £1.9 billion or $2.5 billion
Alberto Calderon, CEO of AngloGold Ashanti, commented: “We are delighted to announce this acquisition, which will add world-class gold exploration assets to our portfolio. This deal will enhance cash flows from the first year of production and create net value from day one. Additionally, it provides further opportunities, including leveraging our institutional infrastructure and outstanding expertise in exploration, operational management, and asset optimization. Following this acquisition, we aim to build upon the excellent work Centamin has done to realize the ambitions we have for this crucial transaction. We also look forward to welcoming Centamin’s employees and shareholders into our group in the coming months”
Martin Horgan, CEO of Centamin, added: “Centamin has demonstrated exceptional capability in managing the Sukari Mine since its discovery, development, and ongoing operations from 2009 until now, highlighting Egypt’s global mining potential. Completing the reinvestment phase, along with efficient and sustainable operations, solidifies Sukari’s position as one of the largest, safest, and lowest-cost Tier 1 gold-producing mines
Horgan added that the acquisition would allow Centamin to grow its productive assets as part of AngloGold Ashanti’s larger, diversified portfolio, benefiting from its strong track record in developing and operating large open-pit and underground mines in Africa, thanks to its close cooperation with governments and host communities”
About AngloGold Ashanti
AngloGold Ashanti is a global gold mining company with a diverse and high-quality portfolio of assets, operations, and projects, as well as exploration activities across nine countries and four continents
In addition to its primary gold production, AngloGold Ashanti also produces silver (in Argentina) and sulfuric acid (in Brazil) as by-products. The company continues its exploration and project studies in Nevada, USA, as well as project studies in Colombia at the Quebradona copper/gold project. It is also advancing several projects under development, particularly at the Obuasi mine in Ghana
