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Egypt’s largest gold mine is about to get a new owner: NYSE-listed global miner AngloGoldAshanti will buy Egypt-focused LSE- and TSX-listed Centamin in a cash and share transaction valued at around USD 2.5 bn, the two companies said yesterday (here, pdf and here). The acquisition will give AngloGold — the sixth largest gold miner in the world — ownership of the Centamin-run Sukari mine in Egypt, one of the world’s largest gold mines.
The details: The transaction values Centamin shares at GBP 1.63 — equivalent to USD 2.14 — marking a premium of around 37.6% to its average price during the 30 days leading to 9 September. Centamin shareholders will receive nearly 0.07 new AngloGold shares for each Centamin share and USD 0.13 in cash. Once the transaction is completed, AngloGold shareholders will own about 83.6% of the company, while Centamin investors will hold approximately 16.4%.
Why Anglogold thinks it’s struck gold: The Johannesburg-headquartered AngloGold describes Sukari as a “world-class Tier 1 asset” boasting competitive operating costs and promising development potential. The mine incurred total cash costs of USD 970 per ounce and all-in sustaining costs of USD 1.2k per ounce in 2023. The takeover “offers enormous geological potential” that AngloGold is “very well placed to develop,” the company’s chairman Jochen Tilk said.
The acquisition will instantly elevate AngloGold’s portfolio: Sukari will add about 450k ounces to AngloGold’s annual production, pushing it past 3 mn ounces and making it the world’s fourth largest gold producer. The Sukari gold mine, which is Centamin’s flagship asset, will add another key gold-producing region to AngloGold’s portfolio, which currently spans nine countries — Tanzania, the Democratic Republic of Congo, Ghana, Guinea, Australia, the US, Brazil, Argentina, and Colombia.
What’s next? The acquisition is yet to receive Centamin shareholder and regulatory approvals. Centamin shareholders are scheduled to vote on the transaction at the end of October for the transaction to be finalized before year end.
Market reax: Centamin shares rose 22.9% by the end of trading yesterday on the London Stock Exchange to close at GBP 146.90. While over the pond, AngloGold shares dropped 4.7% to USD 27.45 on the NYSE.
The story is everywhere in the foreign press: Reuters | Bloomberg | Financial Times | WallStreet Journal.
