Harmony Gold Mining to Buy AngloGold’s South African Mining Assets

SEATTLE (Scrap Monster): South Africa-based Harmony Gold Mining has entered into a definitive agreement with AngloGold Ashanti Limited on acquisition of the latter’s South African business. The completion of the transaction is subject to certain conditions.

According to press release published by Harmony, the acquisition represents a compelling opportunity to enhance its footprints in the country. The assets under acquisition are strategic, financial, operational and geographical fit with its current operations. Further, it will enhance Harmony’s near-term gold production and guarantee increased cash flow at current high gold prices, the press release noted.

The assets to be acquired, including the Mponeng mine and its associated assets and liabilities, are expected to further consolidate Harmony’s position as a leading gold producer in South Africa.

Meantime, Harmony Gold Mining announced that it reported profit in the initial half of fiscal 2020, although gold production declined year-on-year. The company reported net profit of ZAR 1.3 billion in the six-months ended December 31^st, 2019, as compared with loss of ZAR 91 million a year before. During this period, gold production witnessed decline by 8.3% to 688,379 ounces. Furthermore, the company lowered its guidance for the full fiscal year 2020.

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