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Top 100 Movers and Shakers
HOME >
MINING FINANCE / INVESTMENT
MINING FINANCE / INVESTMENT
$102M RAISED
Harmony Gold's festive cheer
Top rated gold stocks buck the global equities trend, showing almost effortless ease when raising cash from capital markets.
Author: Barry SergeantPosted: Monday , 22 Dec 2008
JOHANNESBURG -
Harmony Gold, the world's fifth biggest gold miner by ounces produced, on Monday announced the raising of R979m (US$102m) before costs, by placing 10.5m shares at an average price of R93.20 ($9.68) each between November 25 and December 19 2008. The fresh capital is earmarked mainly to further pay down Harmony's debt, which is targeted, on a net basis, to be around zero by mid-2009. The capital raising is relatively small beer in Harmony's books, given its current market value (capitalisation) of around $9bn.
The capital raising again shows the relative ease with which top grade operating listed gold stocks, as leaders of the global recovery in resources equities, if not all classes of equities, can tap into capital markets. During November, Agnico-Eagle, a leading Tier II gold digger, raised $252m without working up so much as a sweat; Red Back, a top Tier II name, announced that it had raised C$60m, upsized from C$40m "in response to strong investor demand". The gold price has fallen the least among commodities, leaving top operating gold stocks in strong cash generating positions; Kinross, a leading Tier I gold name, last month splashed out $250m on a 6m ounce gold deposit in Chile.
Demand for Harmony's stock underpins its relative outperformance among gold stocks. The group has been restructured; operational results have been improving, and investors are impressed enough to expect continued operating and cost improvements as production increases across the group's interests. The group, which currently produces 100% of its output from South Africa, has also benefited from the relatively weak rand.
Harmony management has said that it anticipates that operations will be profitable and will generate enough cash flow to fund capital requirements going forward. Harmony's capital expenditure requirements (including maintenance capital expenditure) are expected to be around R2.8bn ($290 m) in fiscal 2009, falling gradually to about R1.4bn ($145m) in fiscal 2013, as the group's capital cycle winds down.
In the past while, Harmony has banked substantial cash inflows from deals in Papua New Guinea and with Rand Uranium. In the first transaction Tier I gold name Newcrest paid Harmony $230m in August for its initial 30% interest in the joint venture holding exploration and mining assets in the Morobe province of Papua New Guinea. Newcrest will increase its interest in the joint venture to 50% by sole-funding all project expenditure until the date of first production from the Hidden Valley mine, up to a maximum of $306m. Production is scheduled to commence at Hidden Valley in mid-2009.
In the Rand Uranium deal, $40m has been received by Harmony. A further $157m, plus interest at 5% a year, is set to be received on April 22 2009; the balance of the purchase consideration of some $12m is due as soon as the second stage of the transaction, which relates to Harmony's Old Randfontein assets in South Africa, is finalised, anticipated to be on or shortly after April 22 2009.
The cash inflows have already significantly strengthened Harmony's balance sheet, leaving the company well positioned to capitalise on growth options stemming from its huge resource base, and acquisition opportunities increasingly available in ongoing market turmoil. Starved of cash, junior and exploration gold company stock prices remain, on the whole, deeply depressed.
Harmony counts among its group debt R17bn ($176m) of unsecured five-year convertible bonds, issued in May 2004, with a semiannual coupon of 4,875%. The bonds are convertible at bondholders' option at any time into ordinary shares at a conversion price of R121 ($12.50) a share. The bonds are due on May 15 2009.
In October 2007, Harmony obtained a R2bn ($208m) debt facility; in today's announcement, the group says that it has repaid R1.25bn ($130m) of the Nedbank debt which was repayable by December 2008. The remaining Nedbank loan facility of R750m ($78m) is now repayable by December 2009. After the recent capital raising, Harmony's net debt currently stands at about R 1.4bn ($145m).
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Global tier I gold stocks |
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Stock |
From |
From |
Value |
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|
price |
high* |
low* |
$ bn |
|
$ 28.66 |
-45.6% |
107.1% |
20.888 |
|
|
$ 24.30 |
-69.6% |
73.6% |
4.632 |
|
|
$ 8.95 |
-38.5% |
63.6% |
3.726 |
|
|
AUD 2.82 |
-35.8% |
85.5% |
4.227 |
|
|
$ 25.54 |
-48.0% |
91.0% |
9.028 |
|
|
CNY 4.99 |
-77.3% |
32.7% |
7.518 |
|
|
$ 33.50 |
-38.8% |
94.0% |
29.222 |
|
|
AUD 31.40 |
-22.5% |
89.7% |
9.740 |
|
|
$ 8.43 |
-53.4% |
81.7% |
5.507 |
|
|
$ 16.70 |
-39.1% |
143.8% |
11.005 |
|
|
$ 38.11 |
-33.8% |
80.0% |
16.824 |
|
|
$ 17.85 |
-58.4% |
98.3% |
4.907 |
|
|
$ 23.33 |
-81.7% |
48.6% |
8.811 |
|
|
$ 82.63 |
-17.7% |
25.2% |
20.930 |
|
|
Tier I averages/total |
|
-49.4% |
83.8% |
136.034 |
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Weighted averages |
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-53.4% |
85.9% |
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TIER II |
Stock |
From |
From |
Value |
|
|
price |
high* |
low* |
$ bn |
|
CNY 35.50 |
-75.8% |
55.7% |
1.824 |
|
|
$ 5.50 |
-45.4% |
147.7% |
1.626 |
|
|
R 1.76 |
-72.2% |
19.7% |
0.193 |
|
|
$ 6.78 |
-66.0% |
104.8% |
4.744 |
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|
CAD 0.11 |
-96.9% |
175.0% |
0.054 |
|
|
$ 6.66 |
-28.7% |
179.8% |
2.439 |
|
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$ 46.62 |
-44.1% |
123.4% |
6.744 |
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CAD 3.15 |
-80.4% |
250.0% |
0.562 |
|
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$ 43.22 |
-23.2% |
94.0% |
3.306 |
|
|
CNY 47.80 |
-60.0% |
81.1% |
2.432 |
|
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GBP 3.55 |
-77.0% |
127.2% |
0.424 |
|
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$ 2.38 |
-81.9% |
140.4% |
0.403 |
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$ 0.53 |
-87.7% |
32.5% |
0.103 |
|
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CAD 19.50 |
-21.9% |
67.8% |
1.612 |
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GBP 1.96 |
-66.0% |
110.2% |
2.067 |
|
|
$ 4.19 |
-57.5% |
319.0% |
1.320 |
|
|
CAD 7.79 |
-15.8% |
172.4% |
1.322 |
|
|
CAD 1.65 |
-83.1% |
75.5% |
0.290 |
|
|
CAD 0.67 |
-80.8% |
0.0% |
0.141 |
|
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Tier II averages/total |
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-61.3% |
119.8% |
31.606 |
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Weighted averages |
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-58.3% |
112.0% |
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TIER III |
Stock |
From |
From |
Value |
|
|
price |
high* |
low* |
$ bn |
|
CAD 1.68 |
-59.3% |
236.0% |
0.189 |
|
|
CAD 1.26 |
-67.1% |
38.5% |
0.223 |
|
|
AUD 3.85 |
-49.4% |
62.4% |
0.770 |
|
|
CAD 7.80 |
-7.1% |
122.9% |
0.616 |
|
|
GBP 0.36 |
-85.9% |
69.0% |
0.170 |
|
|
AUD 0.09 |
-92.7% |
11.0% |
0.090 |
|
|
AUD 2.98 |
-52.7% |
35.5% |
0.190 |
|
|
CAD 2.60 |
-60.9% |
122.2% |
0.206 |
|
|
AUD 0.34 |
-64.2% |
83.8% |
0.096 |
|
|
CAD 1.75 |
-84.4% |
71.6% |
0.189 |
|
|
CAD 1.65 |
-86.7% |
247.4% |
0.146 |
|
|
CAD 0.24 |
-87.3% |
46.9% |
0.220 |
|
|
GBP 0.05 |
-89.1% |
9.1% |
0.030 |
|
|
GBP 0.02 |
-73.4% |
13.3% |
0.034 |
|
|
AUD 0.28 |
-39.8% |
86.7% |
0.141 |
|
|
CAD 3.77 |
-73.9% |
57.7% |
0.199 |
|
|
R 1.40 |
-89.2% |
100.0% |
0.014 |
|
|
AUD 0.22 |
-93.3% |
43.3% |
0.024 |
|
|
R 5.50 |
-46.3% |
92.3% |
0.214 |
|
|
GBP 0.01 |
-96.8% |
28.6% |
0.003 |
|
|
AUD 1.53 |
-47.4% |
74.9% |
0.281 |
|
|
AUD 0.17 |
-76.8% |
73.7% |
0.044 |
|
|
$ 44.79 |
-4.0% |
96.9% |
1.520 |
|
|
CNY 8.87 |
-79.6% |
49.1% |
0.694 |
|
|
CAD 3.65 |
-32.8% |
201.7% |
0.445 |
|
|
$ 2.55 |
-91.4% |
15.9% |
0.111 |
|
|
CAD 5.89 |
-47.4% |
119.8% |
0.582 |
|
|
CAD 0.09 |
-95.5% |
80.0% |
0.038 |
|
|
HKD 1.97 |
-69.5% |
146.3% |
0.076 |
|
|
HKD 5.40 |
-74.9% |
190.3% |
0.305 |
|
|
CAD 0.34 |
-82.6% |
42.6% |
0.109 |
|
|
CAD 5.51 |
-60.8% |
65.5% |
0.268 |
|
|
CAD 0.86 |
-83.7% |
65.4% |
0.056 |
|
|
CAD 0.15 |
-95.0% |
45.0% |
0.035 |
|
|
Tier III averages/total |
|
-68.9% |
83.7% |
8.328 |
|
Weighted averages |
|
-69.0% |
84.3% |
|
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|
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DEVELOPERS |
Stock |
From |
From |
Value |
|
|
price |
high* |
low* |
$ bn |
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Anatolia |
CAD 1.23 |
-79.0% |
89.2% |
0.084 |
|
CAD 0.80 |
-64.3% |
88.2% |
0.221 |
|
|
Norton Gold |
AUD 0.09 |
-87.0% |
35.4% |
0.025 |
|
CAD 2.01 |
-72.1% |
82.7% |
0.297 |
|
|
CAD 1.05 |
-91.5% |
31.3% |
0.045 |
|
|
CAD 1.38 |
-81.6% |
160.4% |
0.052 |
|
|
Medusa |
AUD 0.64 |
-56.2% |
56.1% |
0.064 |
|
Osisko |
CAD 3.50 |
-46.6% |
150.0% |
0.478 |
|
Central Rand |
R 4.50 |
-75.0% |
50.0% |
0.115 |
|
Westgold |
AUD 0.20 |
-62.1% |
30.0% |
0.019 |
|
CAD 1.00 |
-67.9% |
1.0% |
0.211 |
|
|
DKK 152.00 |
-73.8% |
0.0% |
0.031 |
|
|
CAD 1.50 |
-75.4% |
127.3% |
0.108 |
|
|
CAD 5.56 |
-78.1% |
94.4% |
0.206 |
|
|
Centamin Egypt |
CAD 0.74 |
-53.8% |
72.1% |
0.537 |
|
CAD 17.10 |
-48.3% |
128.0% |
0.527 |
|
|
Gold Reserve |
CAD 0.72 |
-88.0% |
148.3% |
0.034 |
|
Goldplat |
CAD 0.11 |
-36.8% |
32.3% |
0.018 |
|
Bear Lake Gold |
CAD 0.32 |
-78.4% |
60.0% |
0.022 |
|
St Barbara |
AUD 0.30 |
-67.4% |
66.7% |
0.267 |
|
Jinshan |
CAD 0.57 |
-81.8% |
46.2% |
0.077 |
|
Metals Exploration |
GBP 0.07 |
-77.9% |
8.0% |
0.011 |
|
Mengold Resources |
CAD 0.03 |
-90.3% |
20.0% |
0.001 |
|
Archipelago |
GBP 0.03 |
-91.1% |
56.3% |
0.009 |
|
China Goldmines |
GBP 0.24 |
-81.0% |
11.9% |
0.017 |
|
GBP 0.33 |
-70.7% |
222.0% |
0.047 |
|
|
Apex Minerals |
AUD 0.37 |
-74.0% |
82.5% |
0.098 |
|
CAD 1.27 |
-26.2% |
69.3% |
0.224 |
|
|
B2GOLD |
CAD 0.51 |
-79.8% |
70.0% |
0.068 |
|
Beadell |
AUD 0.06 |
-87.9% |
17.6% |
0.004 |
|
CAD 0.70 |
-64.6% |
32.1% |
0.036 |
|
|
Aflease Gold |
R 1.09 |
-64.3% |
32.9% |
0.063 |
|
Wits Gold |
CAD 6.00 |
-72.1% |
100.0% |
0.138 |
|
Uruguay Minerals |
CAD 0.24 |
-93.5% |
14.3% |
0.010 |
|
GBP 0.64 |
-16.4% |
104.8% |
0.058 |
|
|
AUD 0.70 |
-48.5% |
150.0% |
0.232 |
|
|
CAD 5.43 |
-21.3% |
163.6% |
0.256 |
|
|
CAD 0.51 |
-64.6% |
45.7% |
0.007 |
|
|
Buffalo Gold |
CAD 0.01 |
-98.2% |
100.0% |
0.001 |
|
Cassidy Gold |
CAD 0.06 |
-87.6% |
57.1% |
0.004 |
|
Colombia Goldfields |
CAD 0.03 |
-97.9% |
150.0% |
0.002 |
|
Coral Gold |
CAD 0.14 |
-90.6% |
40.0% |
0.003 |
|
Entrée Gold |
CAD 1.07 |
-60.8% |
114.0% |
0.083 |
|
Exeter Resources |
CAD 1.85 |
-66.8% |
76.2% |
0.077 |
|
Gitennes |
CAD 0.03 |
-91.0% |
20.0% |
0.001 |
|
Golden Goose |
CAD 0.18 |
-81.1% |
157.1% |
0.007 |
|
Grandview Gold |
CAD 0.04 |
-94.5% |
0.0% |
0.001 |
|
Kirkland Lake |
CAD 3.20 |
-75.3% |
27.0% |
0.147 |
|
Aldridge |
CAD 2.04 |
-45.2% |
13.3% |
0.038 |
|
Molycor Gold |
CAD 0.03 |
-90.0% |
66.7% |
0.001 |
|
CAD 0.06 |
-78.6% |
140.0% |
0.005 |
|
|
Nautilus Minerals |
CAD 0.87 |
-77.7% |
19.2% |
0.112 |
|
Navasota Resources |
CAD 0.15 |
-82.6% |
11.1% |
0.007 |
|
CAD 0.20 |
-84.0% |
81.8% |
0.004 |
|
|
CAD 0.05 |
-92.3% |
150.0% |
0.002 |
|
|
Rainy River |
CAD 1.13 |
-81.0% |
82.3% |
0.054 |
|
Reunion Gold |
CAD 0.05 |
-96.9% |
80.0% |
0.002 |
|
Searchgold Resources |
CAD 0.02 |
-90.5% |
33.3% |
0.002 |
|
Skyline Gold |
CAD 0.05 |
-72.2% |
100.0% |
0.003 |
|
Staccato Gold |
CAD 0.06 |
-78.8% |
22.2% |
0.005 |
|
Sunridge Gold |
CAD 0.09 |
-95.1% |
50.0% |
0.005 |
|
CAD 0.08 |
-83.7% |
114.3% |
0.007 |
|
|
Yukon-Nevada |
CAD 0.03 |
-98.3% |
50.0% |
0.005 |
|
Tanami Gold |
AUD 0.02 |
-75.3% |
300.0% |
0.048 |
|
Tasman Goldfields |
AUD 0.06 |
-75.7% |
12.0% |
0.002 |
|
Focus Minerals |
AUD 0.03 |
-76.2% |
47.1% |
0.021 |
|
AUD 0.87 |
-51.7% |
24.3% |
0.040 |
|
|
AUD 0.08 |
-88.6% |
60.0% |
0.012 |
|
|
Regis Resources |
AUD 0.10 |
-87.3% |
58.7% |
0.017 |
|
Goldstar Resources |
AUD 0.04 |
-91.1% |
20.7% |
0.004 |
|
Gryphon Minerals |
AUD 0.06 |
-91.5% |
0.0% |
0.005 |
|
Barra Resources |
AUD 0.04 |
-91.2% |
0.0% |
0.007 |
|
Conquest Mining |
AUD 0.20 |
-71.9% |
30.0% |
0.036 |
|
Hill End Gold |
AUD 0.15 |
-72.1% |
61.1% |
0.031 |
|
Dioro Exploration |
AUD 0.36 |
-80.9% |
34.0% |
0.017 |
|
Shield Mining |
AUD 0.04 |
-86.2% |
0.0% |
0.001 |
|
Dragon Mining |
AUD 0.02 |
-84.0% |
71.4% |
0.012 |
|
Zedex Minerals |
AUD 0.03 |
-88.5% |
50.0% |
0.006 |
|
Red 5 |
AUD 0.04 |
-70.7% |
70.8% |
0.019 |
|
AUD 0.18 |
-77.4% |
80.0% |
0.019 |
|
|
AUD 0.64 |
-56.2% |
56.1% |
0.064 |
|
|
Hampton Hill |
AUD 0.08 |
-86.0% |
0.0% |
0.007 |
|
Navigator Resources |
AUD 0.18 |
-82.3% |
59.1% |
0.016 |
|
Keegan Resources |
CAD 0.88 |
-85.0% |
79.6% |
0.021 |
|
CAD 0.44 |
-89.4% |
14.3% |
0.024 |
|
|
Bear Creek Mining |
CAD 1.01 |
-89.2% |
77.2% |
0.046 |
|
AUD 0.18 |
-47.1% |
125.0% |
0.021 |
|
|
AUD 0.06 |
-74.4% |
1.8% |
0.008 |
|
|
CAD 1.14 |
-45.5% |
90.0% |
0.165 |
|
|
Linear Gold |
CAD 0.67 |
-78.4% |
3.1% |
0.015 |
|
Metallic Venture |
CAD 0.32 |
-88.1% |
48.8% |
0.014 |
|
Mundoro |
CAD 0.23 |
-76.8% |
53.3% |
0.007 |
|
Stratagold |
CAD 0.02 |
-93.9% |
100.0% |
0.003 |
|
Tyhee |
CAD 0.15 |
-75.8% |
81.3% |
0.020 |
|
CAD 2.57 |
-32.9% |
238.2% |
0.111 |
|
|
Miranda |
CAD 0.24 |
-79.4% |
42.4% |
0.009 |
|
Mariana |
GBP 0.03 |
-75.0% |
0.0% |
0.002 |
|
Tribune Resources |
AUD 0.69 |
-67.0% |
6.2% |
0.024 |
|
Atna Resources |
CAD 0.55 |
-68.8% |
83.3% |
0.038 |
|
Condor Resources |
CAD 0.06 |
-96.6% |
50.0% |
0.001 |
|
Australian Solomons |
CAD 0.04 |
-95.7% |
60.0% |
0.002 |
|
Brazauro |
CAD 0.25 |
-72.2% |
150.0% |
0.018 |
|
Frontier Mining |
GBP 0.00 |
-98.1% |
40.0% |
0.001 |
|
NWM Mining |
CAD 0.06 |
-75.0% |
266.7% |
0.004 |
|
Geoinformatics |
CAD 0.01 |
-99.8% |
0.0% |
0.006 |
|
Hawthorne Gold |
CAD 0.29 |
-88.2% |
137.5% |
0.007 |
|
Inter-Citic |
CAD 0.38 |
-82.6% |
123.5% |
0.026 |
|
CAD 1.60 |
-33.3% |
49.5% |
0.058 |
|
|
Midway Gold |
CAD 0.33 |
-92.9% |
83.3% |
0.018 |
|
PMI Gold |
CAD 0.06 |
-83.3% |
450.0% |
0.004 |
|
Verena |
CAD 0.10 |
-75.6% |
150.0% |
0.008 |
|
Vior |
CAD 0.03 |
-87.5% |
25.0% |
0.002 |
|
Ascot Mining |
GBP 0.31 |
-41.9% |
1.7% |
0.008 |
|
Kalimantan Gold |
CAD 0.03 |
-86.4% |
100.0% |
0.002 |
|
Republic Gold |
AUD 0.03 |
-81.5% |
8.7% |
0.013 |
|
Central China Gold |
GBP 0.02 |
-77.1% |
60.0% |
0.004 |
|
BMA Gold |
AUD 0.01 |
-78.8% |
120.0% |
0.004 |
|
Aldridge Minerals |
CAD 2.04 |
-45.2% |
13.3% |
0.038 |
|
Tianshan Goldfields |
AUD 0.06 |
-87.7% |
6.7% |
0.012 |
|
Cambridge Mining |
GBP 0.01 |
-56.0% |
57.1% |
0.007 |
|
Guyana Goldfields |
CAD 1.56 |
-79.9% |
155.7% |
0.066 |
|
GBP 0.01 |
-82.6% |
22.0% |
0.026 |
|
|
Asia Now Resources |
CAD 0.07 |
-87.5% |
18.2% |
0.004 |
|
Azumah Resources |
AUD 0.05 |
-76.7% |
25.0% |
0.003 |
|
BCGold |
CAD 0.06 |
-90.0% |
120.0% |
0.001 |
|
Goldrea |
CAD 0.05 |
-86.6% |
12.5% |
0.002 |
|
Philex Gold |
CAD 0.20 |
-76.5% |
33.3% |
0.007 |
|
La Mancha Resources |
CAD 0.20 |
-67.5% |
387.5% |
0.023 |
|
A1 Minerals |
AUD 0.08 |
-76.7% |
30.0% |
0.006 |
|
Alkane Resources |
AUD 0.14 |
-72.8% |
40.0% |
0.023 |
|
Beaconsfield Gold |
AUD 0.13 |
-58.3% |
38.9% |
0.034 |
|
Catalpa Resources |
AUD 0.02 |
-74.5% |
26.3% |
0.009 |
|
North Queensland |
AUD 0.18 |
-67.3% |
33.3% |
0.018 |
|
Developer averages/total |
-75.7% |
71.3% |
6.666 |
|
|
Weighted averages |
|
-73.3% |
76.4% |
|
|
|
|
|
|
|
|
Overall averages/total |
|
-70.4% |
77.7% |
182.633 |
|
Overall weighted averages |
-56.5% |
89.5% |
|
|
|
* 12-month |
|
|
|
|
|
Source: market data; tables compiled by Barry Sergeant |
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MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning, and concluding, 24 hours later, in the Vancouver evening. If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com
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responses to this article
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Olympus Pacific Minerals Inc. Dear Mr. Sergeant, I'm curious to know why you have not listed Olympus in your analysis, Harmony Gold's Festive Cheer, dated Dec.22, 2008? Olympus trades on the TSX: OYM and is producing and exporting gold from its Bong Mieu Gold plant located . .more by James Hamilton on December 29 2008, 08:58 Find this comment inappropriate? Report it |
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