AngloGold Ashanti (AU) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Centamin adds the Tier 1 Sukari gold mine in Egypt, increasing annual gold production by approximately 450koz and providing a strategic foothold in West Africa through Doropo and ABC projects.

• The deal aligns with the strategy to increase production and reserves from Tier 1 assets, leveraging proven operational and exploration expertise, especially in Africa and the Arabian Nubian Shield.

• Enhances portfolio diversification and provides significant exploration and development upside, particularly in Egypt, Côte d'Ivoire, and EDX blocks.

• Centamin shareholders receive upfront cash and ongoing participation in a larger, diversified group with improved capital markets profile.

• The acquisition is expected to enhance the ability to return cash to shareholders and maintain capital discipline.

Financial terms and conditions

• Centamin shareholders receive 0.06983 new AngloGold Ashanti shares and $0.125 in cash per Centamin share, valuing Centamin at approximately £1.9 billion ($2.5 billion), with $148 million in cash.

• The offer represents a 36.7% premium to Centamin’s closing price on 9 September 2024 and a 37.6% premium to the 30-day VWAP.

• Centamin shareholders will own approximately 16.4% of the combined group upon completion, with AngloGold Ashanti shareholders owning ~83.6%.

• Eligible Centamin shareholders retain the $0.0225 interim dividend, payable 27 September 2024.

• The transaction will be implemented via a Jersey scheme of arrangement, with completion expected in Q4 2024.

Synergies and expected cost savings

• Immediate reduction in combined unit total cash costs and all-in sustaining costs (AISC), with 2023 pro forma AISC at $1,493/oz and total cash costs at $1,094/oz.

• Significant opportunity to deploy the Full Asset Potential program, which has delivered $464 million in incremental EBITDA over two years.

• Integration will streamline duplicated corporate functions and generate supply chain and procurement efficiencies, especially in mining consumables and operational costs.

• Additional upside anticipated from asset optimisation and exploration in high-grade underground zones and EDX blocks.