AngloGold Ashanti (AU) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition adds the Tier 1 Sukari gold mine in Egypt, increasing annual gold production by approximately 450,000 ounces and enhancing the group’s operating and financial profile.

• Aligns with the strategy to focus on Tier 1 assets, leveraging large-scale African mining expertise and providing exposure to the Arabian Nubian Shield and EDX blocks.

• Expands presence in Africa and West Africa, with additional upside from Doropo and ABC projects.

• Enhances portfolio diversification and provides significant exploration and development upside.

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

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 a 36.7% premium to the prior share price.

• Centamin shareholders will own about 16.4% of the combined group post-completion.

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

• Transaction is to be implemented via a Jersey scheme of arrangement, with completion expected in Q4 2024.

• The cash portion will be funded from AngloGold Ashanti’s existing resources and revolving credit facility.

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 implement the Full Asset Potential program, which delivered $464 million incremental EBITDA in two years.

• Integration will streamline duplicated corporate functions and generate supply chain and procurement efficiencies.

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

• For every 1 million ounces, prior deployments increased EBITDA by $200 million.