ANGLOGOLD Ashanti CEO, Kelvin Dushnisky said he resigned from the R234bn gold firm because he would be too long away from his family.
“It was a personal decision to be closer to my family, especially given the constraints on travel,” he said today following the publication of strong interim and second quarter numbers. “The demands were that I would be away from my family far longer than I have committed or promised to them.”
National borders have been closed owing to the threat of Covid-19 which Dushnisky said could result in significant time away from his Toronto base. “Who knows when they will open again?”.
An article by Bloomberg News said South Africa’s Public Investment Corporation which owns about 11% of AngloGold wanted the collection by Dushnisky of two bonuses – one from AngloGold (since returned) and another from his former employer, Barrick Gold – investigated.
The prospect of an investigation drove the board to force Dushnisky to resign, according to an unnamed source. AngloGold has since denied the claim, although the matter might be subject to further questioning later today when AngloGold presents its numbers to analysts.
FUTURE PRIORITIES
Debt reduction would remain AngloGold Ashanti’s priority for the remainder of its financial year, said Dushnisky.
“There are no changes to our priorities. We will continue to chip away at debt whilst we are also self-funding Obuasi and reinvesting in the business,” he said in an interview. AngloGold reopened its Ghana mine, Obuasi, last year and expected to begin the phase two development in the first quarter of next year.
Net debt as of June 30, was at $1.43bn, down 18% from $1.74bn as at December 31. Net cash before growth capital increased four-fold raising the prospect that AngloGold could easily outstrip its 165 South African cents/share full-year dividend for 2019 which was in line with its 10% of free cash flow before expenditure.
Plans to list AngloGold Ashanti in the UK, or change its primary listing, might however take a back seat as the firm focused on “navigating Covid-19”.
“The board’s position on the primary listing has not changed. All options are still on the table. It’s also fair to say that in the current circumstances, as South Africa deals with Covid-19, the company is navigating the pandemic.”
“That is the primary focus although in my support role I’m at the company’s disposal,” said Dushnisky of an agreement to assist interim CEO, Christine Ramon, until end-February.
AngloGold said headline earnings were $404m (2019: $120m), equal to share earnings of 97c (29c). Attributable profit was $421m ($114m). Free cash flow before growth capital – the metric on which AngloGold uses to calculate dividends – increased to $324m ($68m).
Ramon takes up her role as interim CEO of AngloGold on September 1.
