CAPITAL MARKETS

RBC on AngloGold London listing: 'Don't assume Randgold 2.0'

AngloGold Ashanti is widely expected to move its primary listing from Johannesburg to London in the near future, but RBC Capital analyst James Bell has cautioned not to expect the same premium as Randgold Resources managed before its merger with Barrick Gold.

Staff reporter
AngloGold Ashanti's Mponeng mine, where operations are currently suspended after nearly 200 people tested positive for COVID-19

AngloGold Ashanti's Mponeng mine, where operations are currently suspended after nearly 200 people tested positive for COVID-19

"London is the right location," Bell said in a note on Wednesday, pointing to the lack of large scale, listed precious metals businesses "and the city's familiarity with more "challenging" jurisdictions".

However, Bell told readers: "Don't assume "Randgold 2.0".

"Randgold Resources traded at a +30% premium to immediate peers prior to its merger with Barrick so some may extrapolate this to AngloGold. We don't think this is entirely appropriate, but do acknowledge that a move could drive a higher rating on AngloGold shares than its current valuation," said Bell.

AngloGold management have said a move in primary listing was a medium-term priority. Bell said a move before the end of 2020 was "possible", but "we think in H1 2021 is more realistic and potentially better from a financial perspective".

Bell said getting the sale of its South African assets completed this quarter was the first step.

"Post this we don't envisage major opposition from the SA government to a move due to the group maintaining a significant SA corporate footprint," said Bell.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.