Harmony Gold acquisition and growth strategy

Shares of South African gold mining company Harmony Gold have shown resilience in the past six months, outperforming gold prices by rising over six percent while gold prices remained flat. Despite this, Harmony Gold's stock is down by almost four percent since January. The company, which also holds copper assets, recently released its operational update for the September quarter, showing a significant uptick in cash flow by 17% to R857 million, with costs only increasing by 4% over the same period. To gain insights into the current state of the mining sector and the outlook for the industry, CNBC Africa spoke with Jared Coetzer, Harmony Gold's Head of Investor Relations. Coetzer highlighted the challenges and opportunities in the mining sector, emphasizing the importance of collaboration with the government and addressing regulatory hurdles. He pointed out that while the sector faces obstacles such as transportation issues and energy regulations, there are solutions that can be achieved through proactive engagement with stakeholders. Coetzer emphasized the need for creating an environment that attracts investment and benefits both shareholders and communities. Harmony Gold's recent acquisition of the Eva Copper mine in Australia aims to advance the company's copper prospects and diversify its business. The acquisition aligns with Harmony Gold's growth strategy of acquiring affordable assets that de-risk the business, reduce costs, and offer long-term value. Coetzer revealed that the company is open to further acquisitions but is focused on opportunities that meet specific criteria to enhance its position in continental Africa, Southeast Asia, and Australasia. While discussing funding for acquisitions, Coetzer mentioned utilizing cash reserves, available facilities, and exploring various financing options like bridging finance and streaming bonds. He emphasized the positive reception from financiers, underlining the alignment of Harmony Gold's projects with green initiatives and decarbonization. Despite challenges in the digital gold space and the recent volatility in cryptocurrencies, Coetzer remains optimistic about gold's role as a store of value. He highlighted the enduring appeal of gold, especially in times of economic uncertainty and emphasized its potential amid changing global economic conditions. Coetzer reiterated gold's significance as a safe haven asset with intrinsic value, contrasting it with the speculative nature of cryptocurrencies. In conclusion, Harmony Gold's strategic acquisitions, focus on de-risking operations, and commitment to sustainable growth position the company for long-term success in the mining sector.