By Ian Walker
LONDON--AngloGold Ashanti Ltd. (ANG.JO) said Tuesday it is
selling its Cripple Creek & Victor mine in the U.S. to Newmont
Mining Corporation (NEM) for $820 million in cash, plus a net
smelter return royalty.
The South African based global gold mining company said the
money raised from the sale will strengthen its balance sheet and
allow it to implement a deleveraging strategy to lower financing
costs. It will also no longer have to fund the remaining capital of
$200 million required to complete the mine-life extension 2
project, further improving its free cash flow position.
"Our focus continues to be on creating a long-term, high-margin
gold portfolio," Chief Executive Srinivasan Venkatakrishnan said.
"Our two new operations are going from strength to strength, our
core cash-generating mines continue to perform well and we're
getting a strong tailwind from lower oil prices and weaker
currencies--all while keeping our long-term options intact," the
CEO said.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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