AngloGold puts value ahead of production prestige
July 29, 2003
By Quentin Wray
Johannesburg - AngloGold, South Africa's largest gold producer, had deliberately let US firm Newmont take its number one spot in the global production tables "in pursuit of value", AngloGold chief executive Bobby Godsell said yesterday.
Speaking at a business growth conference at the University of Pretoria's Gordon Institute of Business Science, Godsell admitted that while it had been nice to be the biggest gold producer in the world and that analysts had attached a certain cachet to the title, growth that did not "increase value in shareholders' hands" was foolish.
Godsell, who will present his company's second-quarter results on Thursday, said he adhered to a "value-oriented concept of growth" that put a lot of emphasis on return on equity and dividend payouts
.
"We are an old fashioned company and we believe in paying dividends," Godsell said.
He said margins were more important than volumes. as producing a large number of ounces at a loss would only lead to a destruction of value. Mining houses also had to look at stimulating jewellery and industrial demand for gold, he added.
AngloGold lost 11c to R18.20.
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