ANGLOGOLD Ashanti said on Monday it had agreed the sale of its Brazil mine Mineração Serra Grande (MSG) which will be acquired by Aura Minerals for $76m.
Aura Minerals is a Toronto-listed mid-tier gold and copper miner focused on operations in South America, three of which are in Brazil.
The writing was on the wall for MSG which, with production of 80,000 ounces of gold last year, is one of AngloGold’s smallest producers, and among its highest cost. The mine was excluded from a list of tier two assets the group said during its first quarter results last month it could potentially improve.
Selling MSG would “sharpen our focus on capital allocation, operating efficiencies and the optimization of our portfolio,” said AngloGold Ashanti CEO Alberto Calderon in an announcement to the JSE today.
Boosted by the addition of production from its newly acquired stake in Sukari in Egypt, AngloGold reported a 2% reduction in all-in sustaining costs quarter-on-quarter while AISC rose one percent when non-managed mines were included.
Overall, the group reported stand-out first quarter numbers. Earnings were 671% higher year-on-year at $447m. Basic earnings were $443m, a 664% lift over 2024.
As part of the agreement with Aura, AngloGold is entitled to receive deferred payments, to be paid quarterly, equal to 3% net smelter returns over the life of the current MSG mineral resource and reserves.
AngloGold said the recent focus at MSG had been on stabilising its operations, including the decommissioning of the legacy tailings storage facility which is nearing completion.
MSG has been in the crosshairs since 2023 when it was grouped with Córrego do Sítio, another Brazilian mine, as vulnerable for either closure or a sale.
Following the $2.5bn takeover last year of Centamin AngloGold sold its Doropo and Archean-Birimian Contact projects in Côte d’Ivoire to Resolute Mining in exchange for cash and Resolute’s Mansala project in Guinea.
