Harmony to buy AngloGold Ashanti’s gold and uranium assets
Harmony Gold has swooped on a set of AngloGold Ashanti gold and uranium assets in a $300m cash transaction that it could partially fund through a rights issue to grow its domestic output by a third and boost cash generation. AngloGold had wanted to hive its South African assets off in a separate vehicle, but ran into headwinds from shareholders. This transaction goes some way towards realising that ambition and gives AngloGold cash to repay debt and invest in its growth options. Harmony had set a stated target of 1.5-million ounces of gold in three years, up from its 1-million ounces from mines in SA and Papua New Guinea. The transaction will add 280,000oz of gold output at an all-in sustaining cost of $884/oz, well below the $950/oz target Harmony set for its acquisition aspirations.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.