November 19, 2017

Harmony to acquire Moab Khotsong and Great Noligwa mines

File: Gold

Dual-listed Harmony will acquire these mines from AngloGold Ashanti together with long life projects and tailings dams, for an amount of US$300 million in cash.

Harmony believes the acquisition will enhance its position as a robust cash-generative gold mining company, increasing grades, driving down all-in sustaining costs (AISC) and growing its South African gold portfolio.

This value accretive acquisition is in line with Harmony’s strategy to grow, produce safe profitable ounces and increase margins.

The acquisition adds more than 250 000 oz of gold at an AISC below Harmony’s target of US$950/oz, increasing Harmony’s average recovered grade to 5.7g/t.

Synergies with Harmony’s current asset portfolio is expected to realise further upside, progressing pillar extraction at Great Noligwa and reclamation at Mispah tailings.

“Buying Moab Khotsong means we boost our cash flows by more than 60%, increase our average overall underground recovered grade by 12% and grow our South African underground resource base by 38%,” explains Harmony CEO, Peter Steenkamp.

“The acquisition benefits all our stakeholders.

“It creates value for our shareholders, preserves jobs and sustains the surrounding mining communities with the potential to significantly extend the life of mine of the Moab Khotsong operations.

“We believe the South African gold mining environment creates opportunities which Harmony has chosen to capitalise on,” concludes Steenkamp.

Source: Mining Review

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