Harmony to acquire Mponeng and Mine Waste Solutions
Harmony’s intention to acquire the last of AngloGold Ashanti’s assets in South Africa for US$300 million (comprising a $200 million cash and $100 million deferred consideration) was initially announced in February 2020.
The transaction, which will officially entrench Harmony’s position as South Africa’s largest gold producer, is well advanced and the only conditions precedent that remain outstanding to conclude the acquisition are those related to the rectification and approval for the transfer of the mining rights in respect of the West Wits mines (Mponeng and Mine Waste Solutions) from AngloGold Ashanti to Harmony by the Department of Mineral Resources and Energy in accordance with the Mineral and Petroleum Resources Development Act.
The year-on-year weakening of the Rand against the US dollar negatively impacted on the translation of the Company’s US dollar facility, while also affecting the valuation of the foreign exchange derivatives.
The group continues to enjoy favourable commodity and foreign exchange pricing on the unhedged portion of its exposure, whilst simultaneously locking-in the current higher prices as part of its hedging programme.
