AngloGold Puts Mine Spending Over M&A Deals as Profits Rebound
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The mine shaft used to access underground excavation tunnels sits illuminated at the Kibali gold mine, operated by Randgold Resources Ltd., in Kibali, Democratic Republic of Congo, on Friday, Oct. 17, 2014. Randgold and AngloGold Ashanti Ltd. gained control of the Kibali mine by acquiring Moto Goldmines Ltd. in 2009 and is forecast to produce about 600,000 ounces of gold a year.
Photographer: Simon Dawson/BloombergAngloGold Ashanti Ltd. plans to focus on extracting more metal out of its existing mines, rather than using deals to expand.
“We have a lot on our portfolio that we can draw from to increase production,” said Chairman Sipho Pityana at the World Economic Forum in Davos, Switzerland. “That’s what the priority is going to be, and in the overall rankings, mergers and acquisitions would therefore be lower down on our list.”