Harmony Gold reported increased gold output and operating profit for the first quarter of its 2018 financial year, with the potential for further improvements coming from the addition of AngloGold Ashanti’s Moab Khotsong mining complex in the coming months. The Moab mine, one of SA’s lowest-cost mines, will not only boost Harmony’s output, but it will lower the average production costs and raise the average grade of its South African production base. Harmony is buying the mine and associated tailings for $300m. AngloGold CE Srinivasan Venkatakrishnan said during a results call on Monday that the parties were hoping for the Moab transaction to be finalised early in 2018. “Operational excellence has strengthened our margins at our South African operations significantly. The recently announced Moab Khotsong acquisition will further enhance free cash flows and enforces Harmony’s belief that it offers an attractive investment case” said Harmony CE Peter Steenkamp. Harmony produced 290,64...
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