Acquisition of AngloGold Ashanti mine will lift cash flow, Harmony Gold says
Harmony Gold expects its $300m acquisition of the Moab Khotsong mine to boost its operational cash flow 60% and provide "substantial cost savings", the company said on Thursday.
Harmony said in October it planned to buy AngloGold Ashanti’s Moab Khotsong mine in the north of the country and said it would boost production at the mine, which started operations in 2006.
The gold mining company said the purchase, which incorporates the Great Noligwa underground mine and related infrastructure, would boost its operational cash flows by more than 60%, and increase its average overall underground recovered grade by 11% compared to 2017.
"Moab Khotsong is a high-quality, cash-generating gold mine with well-invested and maintained infrastructure, which can underpin near term cash flows and support the creation of value," Harmony said in a statement.
The company said it would get substantial cost savings by incorporating the mine into its existing management structures and support services, as well as procurement and metallurgy-related savings.