CAPITAL MARKETS

AngloGold Ashanti prices US$700M offering

Latest miner to propose offering

Staff reporter
 Doré at AngloGold Ashanti’s Geita gold mine in Tanzania

Doré at AngloGold Ashanti’s Geita gold mine in Tanzania

The South Africa-headquartered company yesterday announced the pricing of an offering of US$700 million aggregate principal amount of 3.75% notes due 2030.

The offering is expected to close on October 1 and Anglo said the net proceeds would be used to repay a portion of the outstanding borrowings under a $1.4 billion revolving credit facility, which would remain the company's primary short-term funding facility.

It said its undrawn $1 billion syndicated bridge loan facility, originally entered into in April to provide additional financial flexibility amid the uncertainty of the COVID-19 pandemic, would be automatically cancelled in an amount equal to the net proceeds from the offering.

AngloGold's move follows First Quantum Minerals upsizing a senior notes offering earlier this month from $1 billion to $1.5 billion.

First Quantum said it intended to use the proceeds to repay a $650 million principal amount under its existing revolving credit facility and redeem its outstanding senior notes due 2022.

Fellow Toronto-listed producers Hudbay Minerals and Iamgold respectively announced an upsized $600 million senior notes offering and a $450 million offering earlier this month.

AngloGold reinstated and trimmed 2020 production guidance last week as COVID-19 uncertainty wanes.

The sale of its assets in South Africa to Harmony Gold Mining is scheduled to close today.

Its shares (JSE: ANG) closed up 1.6% in Johannesburg to 44,522c and the company is capitalised at R186.3 billion (US$11 billion).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.