You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Harmony Gold completes purchase of AngloGold Ashanti’s assets

Transaction is scheduled to close on September 30
Image: Naashon Zalk/Bloomberg News

AngloGold Ashanti said on Monday that the South African government had given “unconditional” approval for the sale of its South African assets to Harmony Gold, indicating it may be able to delist from the Johannesburg Stock Exchange.

South Africa’s mines ministry had initially approved the sale on the condition that AngloGold Ashanti does not delist from the JSE.

AngloGold – which has mines in several other African countries as well as Brazil, Argentina, and Australia – had said in February it would consider moving its primary listing as it streamlines its portfolio.

In August, however, the company said moving the listing was no longer a priority amid the coronavirus pandemic.

Harmony Gold said separately on Monday that the transaction, agreed in February but delayed by the pandemic, is scheduled to close on September 30, with Harmony taking control of the mines including Mponeng – the world’s deepest gold mine – and Mine Waste Solutions, from October 1.

Christine Ramon, interim CEO of AngloGold Ashanti, said: “While the decision to sell our South African assets was not an easy one, we are pleased that the assets are going to Harmony, a capable and responsible operator that will ensure their long-term sustainability.”

Under the deal, Harmony will pay AngloGold Ashanti $200 million in cash as well as $260 per ounce of underground gold production from the Mponeng, Savuka and TauTona mines for six years from January 1 2021 – which AngloGold Ashanti values at around $100 million based on its production forecast.

Get full access to Moneyweb's financial insights and support quality journalism.

Only R63 per month or R630 per year. You can cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Moneyweb Insider INSIDERGOLD
ONLY R63pm

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.
Choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be cancelled at any time.
NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: