Anglo American Announces Sale of Two Royalty Assets for Up to $195 Million

Anglo American has finalized definitive agreements to sell two royalties to Taurus Funds Management for a total consideration of up to US$195 million in cash. The transaction includes an upfront cash payment of US$150 million, with an additional deferred cash consideration of up to US$45 million, contingent upon certain conditions being met. This strategic move aligns with Anglo American's financial and operational objectives, optimizing their portfolio and unlocking value from non-core assets through this substantial cash infusion.

Taurus has agreed to acquire an iron ore royalty owned by De Beers related to the Onslow Iron project in West Pilbara, Australia. Taurus will purchase the De Beers subsidiary that holds this royalty for an upfront cash consideration of US$125 million, along with up to US$25 million in deferred consideration, subject to specific conditions being met.

Taurus has also agreed to acquire a gold and copper royalty related to the Caspiche project in northern Chile. This transaction involves an upfront cash payment of US$25 million and an additional deferred consideration of up to US$20 million, contingent upon certain conditions. The acquisition of this royalty enhances Taurus's portfolio, providing potential future revenue streams from the Caspiche project's gold and copper production. This strategic investment aligns with Taurus's focus on high-value resource assets.

The sale is anticipated to close in Q4 2024, subject to customary closing conditions. This timeline allows for the necessary regulatory approvals and due diligence processes to be completed, ensuring a smooth transition and finalization of the transaction.

Anglo American stands as a preeminent global mining company, supplying indispensable commodities that underpin modern society and facilitate the transition to a sustainable future. Their portfolio comprises a collection of world-class, competitive operations, complemented by a robust pipeline of future-oriented development initiatives. This strategic positioning establishes them as a pivotal supplier of essential metals and minerals that are instrumental in driving progress towards a cleaner, greener world. With a strong emphasis on people, they harness innovative practices and advanced technologies to discover, extract, process, and deliver products to customers with unwavering dedication to safety and sustainability, thereby meeting the escalating demands of an expanding global consumer base.

As a leading global producer of essential commodities including copper, nickel, platinum group metals, diamonds, and metallurgical inputs, Anglo American is steadfastly committed to achieving carbon neutrality across our operations by 2040. Their comprehensive Sustainable Mining Plan outlines ambitious targets to safeguard the environment, foster vibrant communities, and solidify position as an industry benchmark for corporate responsibility.