"AngloGold Ashanti and Gold Fields pause joint venture discussions in Ghana
AngloGold Ashanti and Gold Fields have agreed to pause discussions about a proposed joint venture which would have combined their Iduapriem and Tarkwa gold mines in Ghana.
AngloGold's share price increased 3.65% to R789.09 on the JSE Tuesday afternoon, driving its price even higher from the R431.38 that it traded at a year ago. Gold Fields' share price was up 1.09% to R422.60. The gold price was up 5.29% to $3 389.75 per ounce.
AngloGold Ashanti and Gold Fields have agreed to suspend discussions about a proposal to combine their Iduapriem and Tarkwa gold mines in Ghana.
AngloGold Ashanti's share price surged 3.65% on the JSE Tuesday after it and Gold Fields announced they would pause their proposed Ghana joint venture plans.
The companies proposed the combination of the neighboring mines in March 2023 and had spent much of the time since then in talks with the Ghana government to obtain the necessary approvals.
'Over that time, AngloGold Ashanti has identified changes in its standalone mine plan for Iduapriem, which have the potential to unlock significant additional value,' AngloGold said in a statement.
The companies have paused discussions to allow them to focus on improving the standalone performance at their respective sites, while also allowing AngloGold Ashanti to consolidate the improvements to its long-term mining plan, which currently shows the highest value of its options.
Iduapriem is in the western region of Ghana, some 70km north of the coastal city Takoradi and about 10km south-west of Gold Fields' Tarkwa mine.
The open-pit mine began gold production in September 1992 and was acquired by AngloGold Ashanti in 2002 when it merged with Ashanti Goldfields.
In 2024, Iduapriem produced 237,000 ounces of gold at a total cash cost of $1,118/oz.
In March 2024, Gold Fields finalised the divestment of a 45% stake in Asanko Gold Mine in Ghana. Gold Fields has two other operations in Ghana, Africa's largest open-pit gold mine, Tarkwa, and Damang, which is currently processing stockpiles.
Gold Fields had based its rationale for the joint venture proposal to combine Tarkwa and Iduapriem on the basis that it would extend the life-of-mine operations, lead to increased production and lower costs, and thereby create additional value for all stakeholders.
Meanwhile, in an operational update Tuesday, Gold Fields CEO Mike Fraser said they had reached an agreement with the Ghana government for a way forward for the Damang mine following a rejection of its application to renew the mining lease in March 2024.
As part of this agreement, the government would extend the lease for 12 months from April 2025, subject to Parliamentary ratification in May 2025.
He said the Ghana government had expressed support for Gold Fields' continued operations at Tarkwa. Gold Fields would start preparing the application to extend the Tarkwa mine leases, which were due for renewal in 2027.
On the AshantiGold joint venture, Fraser said: 'Whilst the shared value created by a combination of the two mines remains compelling, Gold Fields and AngloGold Ashanti have agreed to pause discussions related to the joint venture to allow focus on our respective operations on a standalone basis.'
He said Gold Fields was on track to meet production and cost guidance provided in February.
Attributable gold equivalent production for 2025 was expected to be between 2.250Moz - 2.450Moz. AISC (all-in-sustaining-cost) was expected to be between US$1,500/oz - US$1,650/oz.
'Gold Fields has had a solid start to 2025 with the operational momentum reported for the second half of 2024 continuing into the first quarter of 2025,' Fraser said.
Group attributable production for the quarter returned to normalised first quarter levels and was 19% higher than the first quarter of 2024, which was impacted by weather-related challenges, but 14% lower compared to the 2024 fourth quarter, which was a particularly strong quarter,' he said.
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