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AngloGold Ashanti may consider portfolio restructuring to unlock value
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1st March 2010
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TORONTO ( – Africa's biggest gold-miner, AngloGold Ashanti, might relook at its asset portfolio to improve the way the company is valued by the market, CEO Mark Cutifani said on Monday.

However, he emphasised that he first wants to make sure that all the operations are running well before considering any restructuring.

“One thing we have said, is that we will fix the business first, before we start looking at restructuring the portfolio,” Cutifani said at an industry conference in Florida, hosted by BMO Capital Markets.

“On the basis that, whatever you do with the portfolio, you need to have businesses that are generating real cash and value, in terms of being able to effect that value in any portfolio restructure you may look at.”

However, he added that AngloGold is well on its way towards that goal, having improved operating free cash flow in South Africa by some $60-million in 2009, and more than $400-million at its African operations, which had disappointed in the last few years.

“Certainly, we see ourselves well undervalued against our major competitors and maybe that may require some rethinking on the portfolio side,” Cutifani said.

In 2009, AngloGold Ashanti produced 39% of its gold in Southern Africa in 2009, 'continental' Africa accounted for 34%, the Americas represented 18% and 9% was produced in Australia.


AngloGold increased its dividend by 30% in 2009, and Cutifani said he expects further hikes.

“We will continue to increase our dividend and improve our dividend flow as we improve our free cash flow generation and value creation from the operations,” he said.

Edited by: Liezel Hill


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