AngloGold Ashanti (NYSE:AU) and Gold Fields (NYSE:GFI) are looking to dig even deeper in their quest for gold in South Africa, with AngloGold looking to go 1,000 meters lower than the 4,000 meters they're down already for its Mponeng mine.
There have been few major, new gold discoveries recently, and other their acquiring other gold miners, which would sell at a premium because of scarcity and valuations, the other option is to expand organically, and in South Africe that means deeper and wider.
AngloGold CEO Mark Cutifani says, "The most critical challenges for all of us in South Africa are depths and depletion of reserves."
To that end, he said he has no reason not to dig another 1,000 meters down at Mponeng to extract more gold.
Cutifani said if the digging at Mponeng ends up being successful, it could add up to 3 decades of mining life to the mine, and at competitive costs. It will take a minimum of fiver years to complete the digging.
"There's another 100 million ounces in our areas, and our thinking now is how do we get it. It's too big a prize to walk away from. Even if the gold price were lower, we would still do it," Cutifani asserted.
According to Gold Fields CEO Nicholas Holland, the company has an estmated 25 million ounces of gold close to where they're at now, and drilling a little deeper will given them access to it. One of those is the Driefontein mine, which they may only have to go down another 300 meters below the 3,500 meters down the company is working at now.
Holland said, "We can maintain production at existing mines for at least the next five to 10 years."
Gold Fields closed Wednesday at $16.58, gaining $0.42, or 2.60 percent. AngloGold closed at $46.26, rising $0.35, or 0.76 percent.
Showing posts with label Mark Cutifani. Show all posts
Showing posts with label Mark Cutifani. Show all posts
Thursday, February 17, 2011
Thursday, February 10, 2011
AngloGold Ashanti (NYSE:AU) May Split Off Assets in South Africa
With the share price of AngloGold Ashanti Ltd. (NYSE:AU) being weighed down by the volatility of its assets in South Africa, the gold miner is contemplating splitting off the assets to form two companies.
Chief Executive Officer Mark Cutifani said, "The question people are asking is 'Would we get a higher rating for our international gold assets? The answer is, quite possibly. We're not about to announce a split. We continue to look at that among a range of options."
Even though South Africa accounts for 40 percent of AngloGold's overall production, politics, rising costs and lack of power to run the mines continues to be a huge weight on the share price of the company, the reason it's being evaluated.
A leaner AngloGold Ashanti could be much more profitable than the existing entity.
The African National Congress, an untrustworthy political party, are now ruling South Africa, and are pressing to nationalize the mines in the country.
Barrick Gold (NYSE:ABX) successfully spun off its African assets and soared over 30 percent last year. AngloGold shouldn't have any problem doing the same, and probably will if conditions get any worse, which they are likely to.
AngloGold Ashanti closed Wednesday at $45.47, falling $0.90, or 1.94 percent.
Chief Executive Officer Mark Cutifani said, "The question people are asking is 'Would we get a higher rating for our international gold assets? The answer is, quite possibly. We're not about to announce a split. We continue to look at that among a range of options."
Even though South Africa accounts for 40 percent of AngloGold's overall production, politics, rising costs and lack of power to run the mines continues to be a huge weight on the share price of the company, the reason it's being evaluated.
A leaner AngloGold Ashanti could be much more profitable than the existing entity.
The African National Congress, an untrustworthy political party, are now ruling South Africa, and are pressing to nationalize the mines in the country.
Barrick Gold (NYSE:ABX) successfully spun off its African assets and soared over 30 percent last year. AngloGold shouldn't have any problem doing the same, and probably will if conditions get any worse, which they are likely to.
AngloGold Ashanti closed Wednesday at $45.47, falling $0.90, or 1.94 percent.
Friday, November 12, 2010
AngloGold Ashanti (NYSE:AU) Wins Approval for Tropicana
While already securing approval from Western Australia environment minister Donna Faragher for the Tropicana gold project, AngloGold Ashanti (NYSE:AU) was awaiting the decision by its partner Independence Group NL to approve the project to go ahead.
The board of Independence Group NL has green-lighted the project, and all that is left is the approval from the federal minister for sustainability, which is expected by the end of 2011.
AnglogGold has a 70 percent stake in the project and Independence Group the remaining 30 percent.
Tropicana is being touted as the most important major gold find in over a decade in Australia, and over the first three years of the project should produce from a range of 470,000 ounces to 490,000 ounces of gold at a cash cost of $568 an ounce to $588 an ounce.
This was the first-fruits of the exploration program of Anglogold, and CEO Mark Cutifani was ecstatic.
He said, "This is a clear demonstration of the impact an innovative, results-driven exploration program can have on organic growth. It's
gratifying to be developing our own projects at a time when so many majors are forced to pay huge premiums to fill their project pipelines."
The huge premiums he's referring to is the need acquire to expand at a time when mining company valuations have skyrocketed.
Tropicana will increase the gold production of AngloGold Ashanti in Australia to 600,000 ounces a year by 2014.
The board of Independence Group NL has green-lighted the project, and all that is left is the approval from the federal minister for sustainability, which is expected by the end of 2011.
AnglogGold has a 70 percent stake in the project and Independence Group the remaining 30 percent.
Tropicana is being touted as the most important major gold find in over a decade in Australia, and over the first three years of the project should produce from a range of 470,000 ounces to 490,000 ounces of gold at a cash cost of $568 an ounce to $588 an ounce.
This was the first-fruits of the exploration program of Anglogold, and CEO Mark Cutifani was ecstatic.
He said, "This is a clear demonstration of the impact an innovative, results-driven exploration program can have on organic growth. It's
gratifying to be developing our own projects at a time when so many majors are forced to pay huge premiums to fill their project pipelines."
The huge premiums he's referring to is the need acquire to expand at a time when mining company valuations have skyrocketed.
Tropicana will increase the gold production of AngloGold Ashanti in Australia to 600,000 ounces a year by 2014.
Thursday, November 11, 2010
AngloGold Ashanti (NYSE:AU) Production Estimates Coming in at Low End
AngloGold Ashanti (NYSE:AU) full-year production estimates will come in at the lower end of guidance, according to Chief Executive Officer Mark Cutifani.
Talking about Ghana, Cutifani said, “We underestimated some of the social complexities and some infrastructure failures” there.
Besides having to suspend operations at its Obuasi mine in Ghana because of water contamination problems, they also had to lower production at its Savuka mine in South Africa.
In August Anglogold had projected annual production to reach between 4.5 million ounces and 4.7 million ounces. They now see full-year production coming in at 4.5 million ounces.
Overall production in the latest quarter increased to 1.16 million ounces, more than the 1.15 million guidance given by the company in August.
Talking about Ghana, Cutifani said, “We underestimated some of the social complexities and some infrastructure failures” there.
Besides having to suspend operations at its Obuasi mine in Ghana because of water contamination problems, they also had to lower production at its Savuka mine in South Africa.
In August Anglogold had projected annual production to reach between 4.5 million ounces and 4.7 million ounces. They now see full-year production coming in at 4.5 million ounces.
Overall production in the latest quarter increased to 1.16 million ounces, more than the 1.15 million guidance given by the company in August.
Thursday, June 17, 2010
AngloGold (NYSE:AU) Latest to Shrink Australian Investment on Mining Super Tax
AngloGold Ashanti Ltd. (NYSE:AU) is the latest mining company to put a hold on Australian projects, as the inability to turn much of a profit from mining operations in the country has miners fleeing to more profitable areas of the world.
"While we are still committed, what should be a 20-year development that our industry so desperately needs, has slipped back down the project priority list," CEO Mark Cutifani said. "It is very difficult for the Board to accept any recommendation when we don't know what it means in terms detail, or we can't guess what great new ideas the Government has up its sleeve."
Cutifani was referring to the Tropicana gold project in western Australia, which had become among the top priority projects the company was going to develop, until the misguided and unpopular tax imposed by the Rudd government on miners.
Other countries have been ecstatic over the situation, as they're promoting all over the place to draw mining companies to their borders, based on of course, less taxation.
Once miners decide to put off a project, it could end up being years, and even decades till they revisit the mine, as it can take up to 10 years just to get one running. If you add the additional years of abandoning the project, and it is increasingly seen the corner the Australian government has trapped itself in, and there's simply no way out until and unless they change or completely get rid of the tax.
"While we are still committed, what should be a 20-year development that our industry so desperately needs, has slipped back down the project priority list," CEO Mark Cutifani said. "It is very difficult for the Board to accept any recommendation when we don't know what it means in terms detail, or we can't guess what great new ideas the Government has up its sleeve."
Cutifani was referring to the Tropicana gold project in western Australia, which had become among the top priority projects the company was going to develop, until the misguided and unpopular tax imposed by the Rudd government on miners.
Other countries have been ecstatic over the situation, as they're promoting all over the place to draw mining companies to their borders, based on of course, less taxation.
Once miners decide to put off a project, it could end up being years, and even decades till they revisit the mine, as it can take up to 10 years just to get one running. If you add the additional years of abandoning the project, and it is increasingly seen the corner the Australian government has trapped itself in, and there's simply no way out until and unless they change or completely get rid of the tax.
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