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BusinessNewsSouthern Africa

Harmony raises US$200 million to fund deal

Highlights
  • Harmony Gold will use the money to buy AngloGold assets
  • Acquisition cements its position as nation’s No. 1 producer

Harmony Gold Mining Co. raised $200 million through a share sale after investors backed its plan to purchase AngloGold Ashanti Ltd.’s last South African operations.

Harmony decided to sell shares after its mines were shuttered during a coronavirus lockdown, impacting its original plan to finance the $300 million deal with cash and deferred payments. AngloGold’s Mponeng mine and Mine Waste Solutions will help Harmony replenish its South African reserves and cement its position as the nation’s No. 1 gold producer.

“This successful placement is a validation of our investors’ support for Harmony’s stated strategy to safely grow quality ounces and increase margins,” Chief Executive Officer Peter Steenkamp said in a statement on Thursday.

Harmony sold more than 60 million shares at 57.50 rand apiece, 5.4% below Wednesday’s closing price.

The sale of Mponeng and the surface assets also marks the exit from South Africa of AngloGold, the world’s No. 3 gold miner, which emerged from a mining empire created by Ernest Oppenheimer more than a century ago.

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