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AngloGold Ashanti plc (LSE:AGD) and Centamin (LSE:CEY) have reached an agreement on the terms of a recommended acquisition of Centamin, a leading gold producer. The transaction will see Centamin's shareholders receive 0.06983 new AngloGold Ashanti shares and $0.125 in cash for each Centamin share held. The deal values each Centamin share at 163 pence, representing a 36.7% premium to its closing price on 9 September 2024, and a total valuation of approximately £1.9 billion ($2.5 billion) for Centamin’s issued share capital.
The acquisition is strategically aligned with AngloGold Ashanti's goals, adding Centamin’s flagship Sukari gold mine in Egypt, one of the world's largest producing mines, to its portfolio. Sukari, which has produced over 5.9 million ounces of gold since 2009, will boost AngloGold Ashanti's production by approximately 450,000 ounces per year, bringing the company’s total annual output to over 3 million ounces.
Transaction Highlights and Shareholder Benefits
As part of the transaction, Centamin shareholders will receive upfront cash returns and benefit from ongoing participation in a larger and more diversified group. Upon completion, AngloGold Ashanti shareholders will hold 83.6% of the enlarged company's share capital, while Centamin shareholders will hold 16.4%. Centamin shareholders will also retain the interim dividend of $0.0225 per share, payable on 27 September 2024.
Strategic Fit and Long-Term Value
The acquisition of Centamin strengthens AngloGold Ashanti’s portfolio by adding the Sukari mine, which has a strong cost profile with cash costs of $970 per ounce and all-in sustaining costs (AISC) of $1,196 per ounce for the 12 months ending 31 December 2023. The transaction is expected to boost free cash flow per share in the first full year post-completion and enhance AngloGold Ashanti’s net asset value (NAV) per share.
AngloGold Ashanti’s operational expertise, particularly in Africa, positions it well to manage Centamin’s assets and unlock further value from Sukari’s underground zones and adjacent exploration blocks. The combined group is expected to benefit from synergies, including supply chain efficiencies and infrastructure optimization.
Commitment to Responsible Ownership
With its extensive experience operating large-scale open-pit and underground mines, AngloGold Ashanti is committed to responsible ownership of Centamin’s portfolio.
