Bloomberg News

AngloGold Selects Bidders List for Navachab Mine Sale in Namibia

April 29, 2013

AngloGold Ashanti Ltd. (AU:US), the world’s third-largest producer of the metal, has a shortlist of bidders for its Navachab mine in Namibia after “good interest” in the asset.

“From the initial group we’ve selected a shortlist of parties that will proceed to the next phase of the process, after which these shortlisted bidders will be required to submit a binding offer,” Stewart Bailey, a New York-based spokesman, said in an e-mailed response to questions yesterday.

AngloGold planned to review whether Navachab should be sold, Mark Cutifani, the company’s then chief executive officer, said on Aug. 6. AngloGold’s stock has dropped 35 percent this year in Johannesburg after the bullion price slumped to the lowest in more than two years.

AngloGold’s Navachab gold mine is situated close to Karibib, about 170 kilometers (106 miles) northwest of the capital, Windhoek. The open-pit mine, which began operations in 1989, has a 120,000 metric ton-a-month processing plant, according to the company’s annual report. The mine produced 74,000 ounces of gold last year and cash costs were $929 per ounce. Gold traded at $1,468.03 an ounce as of 8:05 p.m. in London.

“Interest is strong in what remains a good asset in an attractive jurisdiction,” Bailey said by phone.

AngloGold is being advised on the sale by CIBC World Markets.

To contact the reporter on this story: Paul Burkhardt in Johannesburg at pburkhardt@bloomberg.net

To contact the editors responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net; John Viljoen at jviljoen@bloomberg.net


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Companies Mentioned

  • AU
    (AngloGold Ashanti Ltd)
    • $17.03 USD
    • -0.24
    • -1.41%
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