Harmony Gold, a gold mining company in South Africa, agreed to acquire South African business of AngloGold Ashanti, a global gold mining company, for $200m. In addition, Harmony will pay a deferred compensation of $260 per ounce on underground gold production from the Mponeng, Savuka and TauTona mines that exceeds 250k ounces per annum for a period of six years commencing on 1 January 2021. It is forecasted that the contingent consideration will have a value of approximately $100m. Moreover, AngloGold will receive $20 per ounce in relation to underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) below the current infrastructure if it is developed. "Acquisition has the potential to improve our overall recovered grade and increasing our cash flow margins. Harmony has demonstrated its ability to increasing the life of mines it operates in South Africa – sustaining the mine communities surrounding the mining operations, preserving jobs and further unlocking value for its shareholders through increased grades and stronger margins”, Peter Steenkamp, Harmony Gold CEO.