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Harmony actively seeking to buy assets, now that it's debt free

Harmony Gold Mining said it had met its long-stated target of being debt free by mid this year, and was still actively seeking to buy assets but had yet to identify any worthwhile mines.

Posted: Tuesday , 26 May 2009

JOHANNESBURG (Reuters) -

Harmony Gold Mining Co. said on Tuesday it had met its long-stated target of being debt free by mid this year, and was still actively seeking to buy assets but had yet to identify any worthwhile mines.

The company has previously said it would consider acquisitions around the world once it became debt free, targeting companies in financial trouble because of the global financial crisis.

Harmony said in a statement it had repaid its 1.7 billion rand convertible bond, and interim Financial Director Frank Abbott told Reuters the world's fifth biggest gold producer had 1.5 billion rand in cash by the end-April.

Harmony said the convertible bond was issued on 21 May 2004 and was listed on the London Stock Exchange.

"Harmony's balance sheet is in excellent health. With cash in the bank, we are in an exciting and advantageous position," Graham Briggs, Harmony's Chief Executive said in a statement.

Shares in Harmony pared earlier losses to close 0.57 percent weaker at 98.24 rand. The gold sector index closed 2.23 percent lower.

The company has recently sold a stake in a firm housing its uranium assets, and sold shares to raise cash to pay off debt.

"We are still actively looking at making acquisitions, but we have not yet been able to find something we are interested in, be it small or big," said Abbott.

Abbott said Harmony, Africa's third-largest gold producer, was still considering paying a dividend in its next financial year. It's current financial year ends in June.