Harmony to purchase Moab Khotsong gold mine from AngloGold for $300m
Harmony Gold received overwhelming support for its $300m purchase of the Moab Khotsong gold mine and tailings project from AngloGold Ashanti. Harmony will buy the operational Moab Khotsong mine and its shuttered neighbour, the Great Noligwa mine, as well as gold-bearing tailings and the Nufcor uranium plant. Investors present at the shareholder meeting on Thursday voted 99% in favour of the transaction. Harmony CEO Peter Steenkamp has said there will be a 62% increase in free cash flow from SA, with the 250,000 ounces-a-year Moab Khotsong mine becoming Harmony’s most profitable mine. The roughly R4bn purchase price of the transaction is just under half the R9.2bn market capitalisation of Harmony, which has mines in SA and Papua New Guinea. Of the $300m, Harmony will fund $200m through its own financial resources of cash and debt facilities, and the remaining $100m through a rights issue, down from the $200m it had originally planned.
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