AngloGold names ex-BHP executive Calderon as new CEO

AngloGold Ashanti (NYSE: AU) has appointed former BHP executive Alberto Calderón as its new CEO, ending almost a year without a top boss, after Kelvin Dushnisky’s sudden departure last July.

Calderón, a 61-year-old Colombian with more than two decades of executive experience in the mining sector, will be starting his new role on Sept. 1, the company said.

A junior minister in a government that fought drug lord Pablo Escobar and his Medellín Cartel, Calderón was chief executive of Orica Ltd., an Australian explosives maker, until February this year.

The Ivy League economist, who was one of the top candidates for the top job at BHP (NYSE: BHP; LSE: BHP; ASX: BHP) before the position went to Andrew Mackenzie, once also run Cerrejón Coal Co., recently acquired by Glencore.

His experience and contacts in the home country will come in handy as AngloGold is moving forward with key expansions in Colombia, including its Gramalote joint venture with B2Gold (TSX:BTO; NYSE:BTG). The asset is at the centre of a mining rights dispute with Canada’s Zonte Metals, that remains active.

Calderón said one of his priorities will be to improve the credibility of AngloGold Ashanti with investors, noting that the No. 3 gold producer is trading far lower than bigger rivals Newmont (TSX: NGT; NYSE: NEM) and Barrick Gold (TSX: ABX; NYSE: GOLD).

The Morila mine in southern Mali, co-owned by Barrick Gold and AngloGold Ashanti. Credit: AngloGold Ashanti

AngloGold Ashanti has had a bad year, with the company’s lack of a permanent chief executive officer and a suspension of its Obuasi mine in Ghana weighing on the stock.

Investors reacted positively to the appointment of Calderón. In New York, the company’s shares climbed as much as 6.7% pre-market and closed almost 6% higher in Johannesburg, the most in seven weeks.

The new CEO will have to take on the company’s battle to repatriate more than US$461 million of its profit from the Democratic Republic of Congo, and resolve challenges with value added tax with the government in Tanzania.

He may also have to decide whether AngloGold should move its primary listing from Johannesburg — a topic discussed for years.

BMO metals and mining analyst Raj Ray, said Calderón comes at a time considered as transitional years for most of AngloGold’s operations, as the company focuses on ore reserves development.

“[He] is based out of Melbourne, Australia, so it will be interesting to see how he goes about building familiarity and understanding of the various operations quickly given the travel restrictions still in place,” Ray said in a note to investors.

Christine Ramon will remain as interim CEO as Calderón assumes the position, and she will return to her role as the company’s CFO.

During her year at the top job, Ramon la out a plan to expand output at key operations in Tanzania, Ghana and Guinea. She also talked about investing more than US$2 billion in two new mines in Colombia — Quebradona (copper-gold) and Gramalote (gold) — from 2022.