LETTER: AngloGold can close valuation gap by getting out of SA
Gold Fields learnt this lesson last year
Kabelo Khumalo's article refers (“AngloGold Ashanti aims to close valuation gap with rivals”, March 19).
AngloGold is valued at about $8.7bn, versus the $38bn of US-American Newmont and $14.5bn of Australian Newcrest.
AngloGold CEO Alberto Calderon does not elaborate how he intends closing the valuation gap with global gold mining companies, but a starting point might be to move his head office and primary listing offshore.
The benefit of operating mines in West Africa, the Americas and Australia — but none in SA — out of Johannesburg is not clear. On the contrary, it makes the share less attractive to international investors.
It puts AngloGold at a disadvantage when bidding for assets in other jurisdictions, as Gold Fields experienced with its thwarted bid for Canadian based Yamana Gold last year.
Christian Naegele
Johannesburg
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