The world’s largest gold producer,
The acquisition would add nearly 10 million oz. to Anglogold’s reserve base plus 900,000 oz. in production. The major, which was created from the merger of Anglo American’s gold mining companies, is expected to produce 7 million attributable ounces of the yellow metal in 1998.
The price of Anglo’s offer has not been disclosed, and Minorca has yet to respond to the offer.
Minorco, a multi-billion-dollar natural resources company based in Luxembourg, operates five gold mines: Jerritt Canyon in Nevada; Pikes Peak in Colorado; Morro Velho and Serra Grande in Brazil; and the newly commissioned Cerro Vanguardia in southern Argentina.
In the third quarter, Anglogold earned US$107 million (or 39 cents per share), while cash costs fell 12% to US$211 per oz. as a result of the weak exchange rate between the South African rand and the American dollar.
Gold production was steady at 1.7 million oz., unchanged from the corresponding period in 1997. Nearly 90% of Anglo’s production comes from underground mines; the remainder is derived from dump reclamation and open-cut operations.
Anglo’s CEO, Bobby Godsell, says the company may have to step up its performance in the event the rand strengthens. “Very clear objectives have been set to eliminate all unskilled jobs and provide the company’s 85,000 employees with the training to make them effective members of multi-skilled, self-directed teams,” he says.
Minorco had been contemplating the sale of its gold mines for some time, and Anglo is the only company that has publicly expressed interest.
Be the first to comment on "MINING MARKETS & INVESTMENT NEWS — Anglogold tenders bid for Minorco’s gold assets"