Harmony Gold: Integration of Mponeng and Mine Waste Solutions
In June 2020, Harmony Gold Mining Company raised US$200 million (R3 466 million) by way of a share placement to fund the US$200 million cash portion of the consideration price relating to the acquisition of the Mponeng mine and Mine Waste Solutions.
The cash from the placement, combined with the cash generated by the operations, resulted in net debt of R1 361 million (US$79 million) as at the end of June 2020. The inclusion of the newly acquired assets will increase Harmony’s future EBITDA meaningfully.
Harmony assumed full ownership of Mponeng mine, Mine Waste Solutions and related assets on 1 October 2020. Integration of these assets is currently under way. The company expects cash flows to be boosted, as it unlocks value through potential synergies with existing surface and service infrastructure, as well as adding quality replacement ounces to the Company’s reserves and resources.
As a result, Harmony will provide an update to its current market guidance of producing between 1.26Moz and 1.3Moz at an all-in sustaining cost of R690 000/kg to R710 000/kg at the Company’s half year results in February 2021.
