AngloGold ranked highly in terms of corporate governance, environmental and social issues relative to other SA listed gold shares. We tilted our overweight gold share position in favour of AngloGold.
We furthermore engaged with management and IR on numerous occasions through the year to improve the disclosure of impact of new Tanzanian Mining Laws and royalty payments.
Implemented by new Tanzanian President John Magufuli – de facto effective during 2017.
Affects ANG through its Geita mine in Tanzania – material as c20% of ANG’s EBITDA.
Element has been engaging with ANG to publish more information – operational and financial - on the effects of new Mining Laws.
ANG has not been able to meet Tanzanian President to date despite a number of requests.
ANG to request meeting via new SA President, Cyril Ramaphosa and new Mines Minister, Gwede Mantashe.
ANG engagement with Tanzanian government may be useful for long-term sustainability of Geita.