AngloGold Ashanti Inks Deal to Sell MSG Mine, Stock Hits 52-Week High

Core Viewpoint - AngloGold Ashanti plc has reached a new 52-week high of $47.77 following the announcement of the sale of its interest in the Mineração Serra Grande mine to Aura Minerals Inc, which is aimed at optimizing its portfolio [1]. Financial Details of the Deal - The sale of Mineração Serra Grande S.A. to Aura will be for a cash consideration of $76 million, subject to working capital adjustments at closing. Additionally, AngloGold Ashanti will receive deferred payments equivalent to a 3% net smelter returns royalty on the mine's current mineral resources [2][7]. Strategic Decision - The MSG mine, located in Goiás, includes three mechanized underground mines and an open pit, with a dedicated metallurgical plant having an annual capacity of 1.5 million tons. Recent priorities have included stabilizing operations and decommissioning the legacy tailings storage facility [3]. Production and Cost Analysis - The MSG mine produced 80,000 ounces of gold in 2024 and 86,000 ounces in 2023. It is characterized as one of AngloGold Ashanti's higher-cost and lower-production operations, and the sale is expected to enhance capital allocation and operational efficiencies [4][7]. Transaction Details - The transaction will exclude subsidiaries of Mineração Serra Grande S.A. that hold non-core assets, which will be retained by AngloGold Ashanti and transferred out through a spin-off before closing. The deal is anticipated to close in the third quarter of 2025, pending closing conditions [5]. Stock Performance - AngloGold Ashanti's shares have increased by 100.6% over the past year, significantly outperforming the industry average growth of 42.9% [6].