– AngloGold Ashanti plans to acquire Centamin in a $2.5 billion all-share deal, which will make the combined company the world’s fourth-largest gold producer.

– The acquisition centers on Centamin’s Sukari Gold Mine in Egypt, a significant Tier 1 asset known for its high output and low-cost production, expected to produce over 400,000 ounces of gold annually with a mine life of 12 years.

– Centamin shareholders will receive 0.06983 new AngloGold shares and $0.125 in cash per share, reflecting a 36.7% premium. The deal will give Centamin shareholders a 16.4% stake in the enlarged AngloGold and is projected to boost free cash flow and net asset value from day one.

AngloGold Ashanti has unveiled plans to acquire Centamin in an all-share transaction valued at $2.5 billion. The acquisition will propel the combined entity to the position of the world’s fourth-largest gold producer.

“This transaction will add a Tier 1 asset to our portfolio and is accretive from day one,” stated AngloGold CEO Alberto Calderon. The deal centers on Centamin’s flagship Sukari Gold Mine in Egypt, a major contributor to Centamin’s gold output.

The Sukari Gold Mine, a large-scale, long-life open-pit and underground operation, began production in 2009 as Egypt’s first modern large-scale gold mine. It has since become one of the top gold producers globally, known for its consistent output and low-cost structure, with all-in-sustaining costs at $1,290 per ounce.

The mine’s reserves are projected to support production for another 20 years, ensuring long-term stability for both companies. Sukari is expected to produce over 400,000 ounces of gold annually with an estimated mine life of 12 years.

Under the terms of the deal, Centamin shareholders will receive 0.06983 of a new AngloGold share and $0.125 in cash for each Centamin share, equating to an offer of 163 pence ($2.14) per share. This represents a 36.7% premium over Centamin’s closing price of 120 pence prior to the announcement.

The transaction values Centamin at $2.5 billion, and upon completion, Centamin shareholders will own 16.4% of the expanded AngloGold Ashanti. AngloGold anticipates the deal will be accretive to free cash flow in its first full year and immediately enhance net asset value, further strengthening its financial position.