BY PETRONEL SMIT
SOUTH AFRICAN GOLD-MINER Harmony Gold may become a takeover target on the back of the outstanding exploration results seen at the Wafi-Golpu deposit in PNG.
Analysts Leon Esterhuizen and Arnold van Graan said the PNG assets could add $2 billion to the value of Harmony, which was some 40% of the current market cap of the company.
Shares in the JSE-listed gold miner surged nearly 12% to R98,40 a share after the RBC takeover comment.
Harmony corporate and investor relations executive Marian van der Walt told Mining Weekly Online the company does not comment on speculation, but added that there was no corporate action that it was aware of.
Esterhuizen and Van Graan stated that another gold major could be looking at a strategy of making a bid for Harmony with the aim of stripping out the PNG assets and relisting the rump as a separate vehicle.
Gold Fields, AngloGold Ashanti and Newcrest were cited as possible buyers.
“In Wafi-Golpu, Harmony is sitting on a ‘get out of jail free’ card and we believe this will be played – one way or another,” the analysts said.
Source: Creamer Media’s Mining Weekly