PRECIOUS METALS

Wafi-Golpu a 'game-changer' for growing South Africa miner

Harmony provides investor update

Staff reporter
 Plans for infrastructure at Harmony Gold Mining and Newcrest Mining’s Wafi-Golpu project in PNG

Plans for infrastructure at Harmony Gold Mining and Newcrest Mining’s Wafi-Golpu project in PNG

Harmony recently said it was keen to restart negotiations for an SML with the PNG government, which had refused to renew Barrick Nuigini's SML in April for the Porgera gold mine, Barrick's joint venture operation with Zijin Mining, the Enga provincial government and landowners.

Harmony also has the Hidden Valley mine in PNG, where a proposed extension is part of the company's growth plans.

In an investor presentation last week, Harmony reiterated the permitting process was underway for Wafi-Golpu, its 50:50 joint venture with ASX-listed Newcrest Mining.

The partners are waiting on a decision regarding the environmental impact assessment, submitted in 2018, which proposes deep sea tailings placement.

Harmony said the mine was expected to achieve steady state production of more than 1.4 million ounces gold-equivalent per year and generate $9 billion in free cashflow in the first 10 years after reaching commercial production, assuming a $1,200/oz gold price and $3/lb copper price.

Wafi-Golpu would be in the lowest decile cost quartile copper production, Harmony said, or negative all-in sustaining cost of $2,128/oz in gold production terms.

Harmony recently acquired AngloGold Ashanti's assets in South Africa and said it expected to become a plus-1.6Moz producer in FY21.

The addition of AngloGold's Mponeng, the world's deepest gold mine, and Mine Waste Solutions was expected to add more than 350,000oz per year.

Harmony's current FY21 guidance is for 1.26-1.3Moz at an AISC of R690,000-710,000/kg.

It plans to provide a further update in February.

Van Eck holdings

Separately, Harmony advised Van Eck Associate Corporation had acquired an interest in shares to take its stake to 10.02% of the company's total issued shares.

Harmony shares (JSE: HAR) are about double a 52-week low but around half the R126.76 peak reached in August.

They closed up 0.045% on Friday to R66.21, to capitalise it at R39.98 billion (US$2.6 billion).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.