Harmony Gold Mining Company Ltd. (HMY) Faces Challenges With CSA Copper Mine

Harmony Gold Mining Company Ltd (NYSE:HMY) is one of the best stocks to buy and hold for the next 6 months. On February 9, Harmony Gold Mining Company Ltd (NYSE:HMY) confirmed that its newly acquired CSA Copper Mine in Australia requires a capital injection and a strategic rethink.

The company took over the CSA mine in New South Wales last October by acquiring Mac Copper in a deal worth $1.03 billion. The acquisition is part of the company’s push to diversify into copper, as gold mining in South Africa becomes extremely costly due to the depth of the country’s mines.

Under Mac Copper, CSA Copper Mine produced 40,000 metric tons of copper per year. However, it is still unclear if it can maintain or increase the output.

“It could be up to two years or even more potentially to de-risk and de-bottleneck the mine,” Chief Executive Beyers Nel said. “It is a mine that is constrained at the moment. It is a mine that requires a bit of a rethink and recapitalisation.”

Harmony Gold also owns Eva Copper in Queensland, Australia, and is a joint owner with Newmont of Wafi-Golpu, a gold-copper project in Papua New Guinea.

Harmony Gold Mining Company Ltd. (NYSE:HMY) is a major, experienced gold producer and specialist with extensive operations in South Africa and Papua New Guinea, and a growing copper portfolio in Australia. It manages the full mining life cycle, including exploration, development, and operation of underground and surface mines, while being a leader in gold tailings retreatment.

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Disclosure: None. This article is originally published at Insider Monkey.