LONDON — South Africa-based miner AngloGold Ashanti Ltd. said it plans to raise $2.1 billion in a rights issue and spin its international assets into a new London-listed company.
The news comes amid a slump in gold prices, which have fallen by a third in the past three years and helped drive AngloGold to $2.2 billion net loss last year.
“It has become increasingly clear that the two distinct parts of our portfolio require different strategies (and) focused management and should be appropriately capitalized to realize their full potential and unlock further value for shareholders,” said AngloGold Chairman Sipho Pityana.
AngloGold, through its subsidiary Cripple Creek & Victor Gold Mining Co., operates the Cresson mine in Teller County, the largest producing gold mine in Colorado.
AngloGold, the world’s third-largest gold producer by volume, also has struggled with rising energy and labor costs in South Africa, where it produces about one-third of its gold annually.
The company’s Johannesburg-listed shares slumped by nearly 10 percent after its announcement Wednesday.
