The South Africa-based AngloGold Ashanti board has approved a plan to acquire Australia’s Centamin in an all-share transaction worth $2.5 billion, positioning the newly formed company as the world’s fourth-largest gold producer, according to a company statement on September 10.
The deal will grant AngloGold control of the Sukari Gold Mine, Egypt’s largest and first modern gold mine located in the North African country’s Eastern Desert.
“This transaction will add a Tier 1 asset to our portfolio and is accretive from day one,” according to Alberto Calderon, CEO of AngloGold Ashanti.
Under the terms of the deal, Centamin shareholders will receive 0.06983 of a new AngloGold share and $0.125 in cash for each share, totaling an offer of 163 pence ($2.14) per share—representing a 36.7% premium over Centamin’s closing price of 120 pence prior to the announcement. Upon completion, Centamin shareholders will hold 16.4% of the enlarged AngloGold Ashanti.
AngloGold expects that the acquisition will boost free cash flow in its first full year and enhance net asset value, further strengthening its financial position.
Sukari gold mine
The Sukari Gold Mine began operations in 2009 and has since established itself as a leading global gold producer. Renowned for its consistent output and low-cost structure, it has all-in sustaining costs of $1,290 per ounce. The mine’s reserves are projected to support production for another 20 years, with an annual output exceeding 400,000 ounces.
Since its inception, the mine has produced over 5.9 million ounces of gold, according to local media reports. In 2023, Centamin’s annual gold production from Sukari reached 450,058 ounces.
What did Egypt say?
Following the announcement of the anticipated acquisition, Egypt’s Ministry of Petroleum and Mineral Resources emphasized that the deal will not impact Egypt’s rights or revenues from the Sukari gold mine.
In a statement, the ministry clarified that the concession agreement for the Sukari mine, established under Law No. 222 of 1994, remains fully in effect and governs the relationships among all parties involved.
The ministry further assured that the Sukari Gold Mining Company will continue to operate without changes to its structure or management, as both the Egyptian Mineral Resources Authority and Pharaoh Gold Mines NL hold equal 50% stakes in the company.
Additionally, the ministry pointed out that the acquisition is a commercial transaction between two publicly traded companies—Centamin on the London Stock Exchange and AngloGold Ashanti on the New York Stock Exchange—meaning it does not require Egyptian governmental approval since it pertains to all of Centamin’s shares globally.
In welcoming AngloGold Ashanti to Egypt’s mining sector, the ministry noted that this acquisition demonstrates international confidence in Egypt’s investment climate and the effectiveness of government policies aimed at attracting foreign investment.
Prime Minister Mostafa Madbouly reiterated in a press conference earlier this month that Egypt’s share of the Sukari Gold Mine will remain unaffected.
