HARMONY PLANS TO RAISE $200M VIA SHARE ISSUE

HARMONY Gold Mining said yesterday it planned to raise up to $200 million (R3.69 billion) via a share issue to fund part of its purchase of AngloGold Ashanti’s last remaining assets in South Africa. AngloGold said in February it would sell the assets, including Mponeng mine, the world’s deepest gold mine, for about $300m to Harmony, turning it into the country’s largest gold producer. Harmony said the fundraising would allow the company to benefit from balance sheet flexibility and optionality, given the current uncertainty caused by the Covid-19 pandemic. Shares in Harmony fell 6 percent to R66.59 by early afternoon yesterday after the company said that it was seeking authority to issue the ordinary shares for cash. Shares in other gold miners listed on the JSE were up about 3 percent. Harmony also said it had withdrawn its annual production guidance for the financial year as it does not have clarity on the ramp-up of production from its mines after the lockdown. From May 1, mines have been allowed to start operations with 50 percent of their workforce. “Due to the impact of Covid-19 and continued uncertainty as to when our mines will be allowed to return to full production, we have decided to withdraw our annual production guidance,” Harmony said.

It had earlier forecast production of 1.4 million ounces of gold for the fiscal year ending June 30. It produced 990 681 ounces in the nine months that ended March 31, it said.