LETTER: AngloGold can close valuation gap by getting out of SA

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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