AngloGold Continues To Eye Junior Mining Space - CEO
31 Juillet 2009 - 10:42AM
Dow Jones News
AngloGold Ashanti Ltd. (AU), active this year in agreeing
ventures and acquisitions that could boost its reserves, continues
to look for growth opportunities in the junior end of the industry,
Chief Executive Mark Cutifani said Friday.
"I do think there has been a pickup" in mergers and
acquisitions, Cutifani said. "Those companies that don't have cash
are struggling."
Cutifani told reporters during a conference call the
Johannesburg-based company, the world's third-largest producer of
the precious metal, has held a number of "conversations" but no
major transactions are in the works.
"We see more value in the junior and mid-cap space. That's where
we're focusing," he said.
AngloGold in mid-July agreed to invest $244 million for a 50%
stake in Moto Goldmines Ltd. (MGL.T), supporting a takeover of Moto
by Randgold Resources Ltd. (GOLD). The company said it is a
strategic move to gain exposure to one of the world's richest gold
ore bodies, which has an indicative resource of 22 million troy
ounces and reserves of 5.5 million ounces in Democratic Republic of
Cogo.
Earlier this year, AngloGold signed a joint venture pact with
Laurentian Goldfields Ltd. (LGF.V) to explore specific areas in
Quebec, Ontario and Saskatchewan. It also entered a partnership
with Dubai-based Thani Dubai to drill and develop new deposits in
North Africa and the Middle East.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com