ANGGOLD: 10,700 -54 (-0.50%)
Harmony Gold expects $300 mln mine deal to boost cash flows
JOHANNESBURG, Dec 7 (Reuters) - South Africa's Harmony Gold
expects its $300 million acquisition of the Moab
Khotsong mine to boost its operational cash flow by 60 percent
and provide "substantial cost savings", the company said on
Harmony said in October in planned to buy AngloGold
Ashanti's Moab Khotsong mine in the north of the
country and said it would boost production at the mine, which
started operations in 2006.
The gold mining company said the purchase, which
incorporates the Great Noligwa underground mine and related
infrastructure, would boost its operational cash flows by more
than 60 percent, and increase its average overall underground
recovered grade by 11 compared to 2017.
"Moab Khotsong is a high quality, cash generating gold mine
with well-invested and maintained infrastructure which can
underpin near term cash flows and support the creation of
value," Harmony said in a statement.
The company said it would get substantial cost savings by
incorporating the mine into its existing management structures
and support services as well as procurement and
(Reporting by Tanisha Heiberg. Editing by Jane Merriman)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.