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Cutifani cuts AngloGold structure Posted: Mon, 12 Nov 2007 [miningmx.com] -- ANGLOGOLD Ashanti CEO, Mark Cutifani, has taken little time restructuring management of the company he joined two months ago, removing the chief operating officer's (COO) role. As a result, current COO Neville Nicolau has resigned after 29 years at Anglo American and then at AngloGold Ashanti which was formed in 1999. “We wish Neville well on his chosen path,” said Cutifani. And there is more to come, according at AngloGold Ashanti. It said in its press statement that further announcements “... regarding structure and appointments would be made in due course”. “It's quite brutal,” said an analyst. “But AngloGold has time and time again disappointed in its operational performance,” he said. “They need to get Obuasi working properly for example.” AngloGold Ashanti said the restructuring was to place renewed emphasis on safety, productivity and “enhanced shareholder value”. As a result, the company was “... moving to a regional operating structure in which there will be three operating heads reporting directly to the CEO”. “It’s a very important move,” said David Davis, a gold analyst at Credit Suisse Standard Securities in Johannesburg. “With about 21 operational mines it’s too difficult to control each one all the time.” Interestingly, in moving to a regional reporting structure, Cutifani is echoing the strategy of Cynthia Carroll, CEO of once parent firm Anglo American which, with an 18% stake, is still AngloGold Ashanti’s largest single shareholder. Earlier this year, Carroll removed divisional chairperson's role. “My question is where the direction for this came from,” said Liston Meintjes, chief investment officer at Metropolitan Asset Managers. “Is it still the long-hand of Anglo American which is saying it recommends such changes be made?,” he said. Meintjes also said that other changes could extend to AngloGold’s treasury. “Somebody ought to be fired for doing nothing about the hedge book for so long; somebody other than the COO.” AngloGold sold gold for an average of 9% below the spot price of gold in the September quarter and said it would earn between 10% and 12% below the spot price in the coming quarter. Were the company to consider removing its hedge book in a single transaction, it might not need such a large treasury. Click Here to subscribe
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