Harmony Gold, a prominent South African mining company, has announced a substantial surge in gold production, revealing a remarkable 14% increase in output for the six months leading up to December 2023. This notable uptick is attributed to elevated grades at its South African mines and a robust operational performance in Papua New Guinea.
According to the trading update provided by Harmony Gold, gold production for the half-year is estimated to fall within the range of 820,000 to 835,000 ounces. This signifies a noteworthy surge of 12% to 14% compared to the corresponding period in December 2022.
Harmony Gold credits this production upswing to enhanced underground grades at its Mponeng and Moab Khotsong mines in South Africa, coupled with what the company describes as an “excellent operational performance” at the Hidden Valley mine in Papua New Guinea. Additionally, the waste retreatment operations in South Africa demonstrated a robust performance, contributing to the overall positive results.
The all-in-sustaining costs (AISC), an industry benchmark, are projected to be between 830,000 and 855,000 rand ($44,000-$45,000) per kilogram of gold for the half-year. This falls comfortably below the guided AISC of 975,000 per kilogram, a direct outcome of the substantial increase in production.
Harmony Gold remains steadfast in its outlook for the 2024 financial year, keeping its production and cost guidance unchanged. The company aims to achieve gold production at the upper end of the spectrum, ranging between 1.38 million ounces and 1.48 million ounces, with an AISC of below 975,000 rand per kilogram.
Investors and industry observers can anticipate further insights into Harmony Gold’s performance when the company unveils its half-year results on February 28. The robust production figures and cost management demonstrated in this trading update bode well for Harmony Gold’s position in the mining sector.
