AngloGold Ashanti has asked is shareholders to approve a resolution for a five-year term, share buyback programme.
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AngloGold Ashanti on Monday asked its shareholders to support a resolution for the group to buy back some R32 billion of its shares over five years, which will be tabled at its annual meeting to be held on July 23, 2026, as some shareholders have indicated they will not support it.
The mining group said in a statement several proxy advisory services have issued voting reports about the resolution, including Glass Lewis & Co and Institutional Shareholder Services (ISS). While Glass Lewis recommended a "for" vote, ISS recommended voting against the resolution.
AngloGold's directors said that although it was incorporated in the UK, it is a global gold producer with its primary listing on the New York Stock Exchange, membership in the Russell 3000 Index, and its global headquarters in Denver, Colorado.
In addition, its shares are not listed on the London Stock Exchange.
“While the board understands ISS's structural application of its UK & Ireland Voting Guidelines based on the company's place of incorporation, the board views the requested shareholder authority as equipping the company with the same financial agility as its direct peer group, which consists primarily of North American gold producers,” the directors said.
These companies routinely leverage large-value, long-term buyback authorisations to optimise shareholder returns. “Adopting this framework ensures that the company is not operating at a structural disadvantage when competing for global equity capital,” they said.
“The programme is a natural progression of our capital allocation framework, driven by the board's confidence in the company's cash generation capabilities and long-term financial outlook. It establishes an efficient mechanism to return capital to shareholders, without disrupting our core operational funding,” the board said.
While ISS advises, under the UK Guidelines, that an authority for market purchases of ordinary shares should be limited to 18 months, a five-year authority is consistent with UK company law, AngloGold said.
“A multi-year mandate allows management to execute repurchases in line with the strategic goals of the company while accounting for the inherent unpredictability of the global markets and economy, rather than being bound by short-term, arbitrary renewal timelines,” the Board said.
Additionally, the programme is limited by the $2 billion repurchase volume, the directors said.
“Given the aggregate cap, the board does not consider that the five-year authorised period gives rise to any increased corporate governance risk,” they said.
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