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http://www.miningweekly.co.za/min/news/today/?show=31658 South African gold producer, Harmony Gold Mining Company, announced that it would focus strongly on organic growth, rather than acquisition as it had done in the past. CE Bernard Swanepoel told journalists yesterday that the rising gold price does not create a favourable market for buying growth opportunities, but would provide excellent returns from internal or organic growth. The company has completed 23 acquisitions in the past seven years, giving it a portfolio of, what is believed to be the most prospective shallow- to medium-depth mining project areas remaining in South Africa. Swanepoel said Harmony?s growth strategy would be to focus on projects that had already been partially completed, before being abandoned by developers. This, he explained, gives Harmony the advantage of developing a project into which money had already been invested and infrastructure set up, thus eliminating a large degree of technical risk. He revealed that the company had acquired many parts of the shallow orebody on the Witwatersrand Basin. ?The mines we bought were previous generation old mines, that were profitable shallow mines and that can now be developed and become even more profitable medium to deep level mines,? said Swanepoel. He emphasised, however, that the new strategy does not preclude further acquisitions for Harmony, explaining that price would be the determining factor. ?Harmony was always a buyer and then a builder, but now due to the gold price, the company would most likely become a builder then a buyer. I?m not saying we will stop acquisitions altogether. If the price is right, why not buy?? Three South African projects that have thus far been approved by Harmony?s board are said to have secured the company?s organic growth for the next five years. The most recently announced project, Doornkop South Reef ? part of Harmony?s Randfontein operations ? has an in situ resource of 6,6-million ounces of gold and life of mine is estimated at some 20 years. The project, stopped and started several times by its previous owners, is essentially a shaft-deepening operation. At full production of 330 000 oz/y, 2798 employment opportunities will have been created. The venture is also a BEE partnership for Harmony, with 26% of Doornkop belonging to African Vanguard Resources. Tshepong North Decline is another organic growth project approved by the Harmony board and is a 50% joint venture with Free Gold ? another BEE partnership. The venture requires development of a decline, at a capital cost of R280-million. This mine would provide an additional 167 000 oz/y over a period of eight years and would create a further 980 employment opportunities. Another organic growth opportunity for Harmony is the Nyala Shaft, where the opportunity to re-open the shaft is being evaluated. Current ?care and maintenance? of the mine is estimated at R166,5-million over the life of mine. Extraction of the shaft pillar and high-grade reserves at a capital cost of R67,4-million would allow for a life of mine of seven years (560 000 oz). Swanepoel said that Harmony?s operations in other parts of the world could secure up to ten years of organic growth, referring to growth in Russia, which currently contributes some 60 000 oz of gold a year, and Bendigo, in Australia, which could add as much as 200 000 oz of gold a year to Harmony?s production ? an amount which is between 6% and 7% of Harmony?s current three-million ounces a year. He added, however, that the company has no plans to diversify into platinum mining. ?Most platinum opportunities are currently overpriced and this is not a key strategy. If it was to happen, it is likely that Kalplats would take Harmony into platinum mining,? he said. Kalplats is a new platinum orebody discovered by Harmony and Swanepoel said it could be sold at the right price. ?Because it is a new discovery, the market is somewhat sceptical. We could develop the mine ourselves, but that would depend on the metallurgy and the platinum price?. Metallurgical results are expected by the end of March. |
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| aus der Diskussion: | Harmony Gold Mining (HGMCY) |
| Autor (Datum des Eintrages): | Schieler (29.01.03 11:12:17) |
| Beitrag: | 50 von 59 (ID:8450073) |
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