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Anglo/Harmony deal still on: Steenkamp

Harmony Gold Mining (JSE: HAR) CEO Peter Steenkamp has indicated the company’s US$300 million deal to acquire AngloGold Ashanti’s assets in South Africa may be slightly delayed but hasn’t been derailed by COVID-19.
Anglo/Harmony deal still on: Steenkamp Anglo/Harmony deal still on: Steenkamp Anglo/Harmony deal still on: Steenkamp Anglo/Harmony deal still on: Steenkamp Anglo/Harmony deal still on: Steenkamp

Harmony Gold Mining CEO Peter Steenkamp

Staff reporter

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Steenkamp told a virtual panel of industry leaders yesterday the fact 196 people had tested positive for COVID-19 at AngloGold's Mponeng gold mine would not affect the deal. 

"I'm not really qualified to talk about the issues there because it's not in our hands yet," he said.

"It won't affect the deal."

Harmony had recently reported two cases of COVID-19 at its Kalgold operations.

In terms of the acquisition, Steenkamp said the deal was not yet complete and there were a few issues still outstanding.

"We don't expect it to be completed before the end of June or July," he said.

The deal, announced in February and comprising $200 million in cash and potentially $100 million compensation based on underground ounces produced, was expected to close around June 30.

Harmony announced plans earlier this month to issue shares to raise up to US$200 million to help fund the acquisition of the assets, Mponeng and Mine Waste Solutions.

Steenkamp told the panel Harmony had made a significant investment in the country in recent years.

"We're quite keen on opportunities in South Africa," he said.

Harmony closed down 5.6% yesterday to 5,800c to capitalise it at ZAR31 billion (US$1.8 billion).

AngloGold Ashanti (JSE: ANG) closed down 3.2% to 42,360c, capitalising it at ZAR176.5 billion (US$10 billion).

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