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AngloGold Ashanti Agrees to the Sale of the Mineração Serra Grande Mine
AngloGold Ashanti Agrees to the Sale of the Mineração Serra Grande Mine

National Post

time4 days ago

  • Business
  • National Post

AngloGold Ashanti Agrees to the Sale of the Mineração Serra Grande Mine

Article content LONDON & DENVER & JOHANNESBURG — AngloGold Ashanti plc ('AngloGold Ashanti', 'AGA' or the 'Company') has agreed to sell its interest in Mineração Serra Grande mine ('MSG') located in the state of Goiás, Brazil, to Aura Minerals Inc. ('Aura'). Article content Article content The Company will sell Mineração Serra Grande S.A. ('Sale'), which owns MSG to a Brazilian incorporated affiliate of Aura ('Purchaser') for the following consideration: Article content A cash consideration of $76 million on closing subject to certain working capital adjustments as at the closing date; and Deferred Consideration Payments equivalent to a 3% net smelter returns participation over the current Mineral Resource of MSG inclusive of the Mineral Reserve – these Deferred Consideration Payments will be paid quarterly in cash. Article content The recent focus at MSG has been on stabilizing the operations including the decommissioning of the legacy tailings storage facility ('TSF Decharacterization') which is nearing completion. However, MSG remains one of AGA's higher cost and its smallest operation by production. Article content 'This sale ensures we further sharpen our focus on capital allocation, operating efficiencies and the optimization of our portfolio,' said AngloGold Ashanti CEO Alberto Calderon. 'We've also worked hard to ensure that MSG and its excellent team joins an established company which will continue to be responsible stewards of this asset for the benefit of all stakeholders.' Article content The Sale excludes certain subsidiaries of Mineração Serra Grande S.A which hold assets that do not form part of MSG's mining operations and include properties. These will remain in the AGA group and will be transferred from under Mineração Serra Grande S.A. by means of a spin-off prior to closing ('MSG Subsidiaries Transfer'). Article content The Disposal is subject to the fulfilment of the following conditions: Article content i. Anti-trust approval from the Brazilian authorities (CADE); ii. The completion of the TSF Decharacterization work; iii. The completion of the MSG Subsidiaries Transfer; and iv. No Material Adverse Event occurring prior to closing. Article content It is expected that all the conditions will be fulfilled, and the Sale is expected to close during Q3 2025. Article content ABOUT MSG Article content MSG is located in the northwest of the state of Goiás, central Brazil about 5km from the city of Crixás. The MSG operation comprises three mechanised underground mines and an open pit, with one dedicated metallurgical plant with an annual capacity of 1.5 Mt. Article content As at 31 December 2024, MSG has an exclusive Measured & Indicated Mineral Resource of 1.08 Moz at an average grade of 3.14 g/t, an exclusive Inferred Mineral Resource of 1.41 Moz at an average grade of 3.39 g/t and Proven & Probable Mineral Reserve of 0.37 Moz at an average grade of 2.72 g/t. In 2024, MSG produced 80 koz of gold (2023: 86 koz). Article content ABOUT AURA Article content Aura is incorporated in the British Virgin Islands and is listed on the Toronto Stock Exchange and the Brazil Stock Exchange (B3). Aura is a high growth mid-tier gold and copper producer operating five mines across the Americas: a copper-gold-silver mine in Mexico, three gold mines in Brazil, and a gold mine in Honduras. In addition, Aura holds two development projects in Brazil and recently acquired a gold development asset in Guatemala. Article content Forward-looking statements Article content Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti's operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti's exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti's liquidity and capital resources and capital expenditures, the consequences of the COVID-19 pandemic and the outcome and consequences of any potential or pending litigation or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti's financial reports, operations, economic performance and financial condition. These forward-looking statements or forecasts are not based on historical facts, but rather reflect our current beliefs and expectations concerning future events and generally may be identified by the use of forward-looking words, phrases and expressions such as 'believe', 'expect', 'aim', 'anticipate', 'intend', 'foresee', 'forecast', 'predict', 'project', 'estimate', 'likely', 'may', 'might', 'could', 'should', 'would', 'seek', 'plan', 'scheduled', 'possible', 'continue', 'potential', 'outlook', 'target' or other similar words, phrases, and expressions; provided that the absence thereof does not mean that a statement is not forward-looking. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti's actual results, performance, actions or achievements to differ materially from the anticipated results, performance, actions or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results, performance, actions or achievements could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social, political and market conditions, including related to inflation or international conflicts, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics (including the COVID-19 pandemic), the failure to maintain effective internal control over financial reporting or effective disclosure controls and procedures, the inability to remediate one or more material weaknesses, or the discovery of additional material weaknesses, in the Company's internal control over financial reporting, and other business and operational risks and challenges and other factors, including mining accidents. For a discussion of such risk factors, refer to AngloGold Ashanti's annual report on Form 20-F for the financial year ended 31 December 2024 filed with the United States Securities and Exchange Commission (SEC). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti's actual results, performance, actions or achievements to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on AngloGold Ashanti's future results, performance, actions or achievements. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein. Article content Article content Article content Article content Article content

Eldorado Gold (TSE:ELD) Is Experiencing Growth In Returns On Capital
Eldorado Gold (TSE:ELD) Is Experiencing Growth In Returns On Capital

Yahoo

time25-05-2025

  • Business
  • Yahoo

Eldorado Gold (TSE:ELD) Is Experiencing Growth In Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Eldorado Gold (TSE:ELD) looks quite promising in regards to its trends of return on capital. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Eldorado Gold: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.087 = US$478m ÷ (US$6.0b - US$473m) (Based on the trailing twelve months to March 2025). So, Eldorado Gold has an ROCE of 8.7%. On its own that's a low return, but compared to the average of 4.2% generated by the Metals and Mining industry, it's much better. See our latest analysis for Eldorado Gold In the above chart we have measured Eldorado Gold's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Eldorado Gold . We're glad to see that ROCE is heading in the right direction, even if it is still low at the moment. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 8.7%. The amount of capital employed has increased too, by 23%. So we're very much inspired by what we're seeing at Eldorado Gold thanks to its ability to profitably reinvest capital. To sum it up, Eldorado Gold has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if Eldorado Gold can keep these trends up, it could have a bright future ahead. One more thing to note, we've identified 1 warning sign with Eldorado Gold and understanding it should be part of your investment process. While Eldorado Gold may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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