JSE- and NYSE-listed Harmony Gold has met its yearly production guidance for the eleventh consecutive year, with gold production expected to be between 1.4-million and 1.5-million ounces, underground recovered grades at about 5.80 g/t, all-in sustaining costs within guidance and capital expenditure slightly below plan.

CEO Beyers Nel says robust cash generation and operational consistency in the financial year ended June 30 has enabled the company to return a record R4.4-billion to shareholders through dividends over the past 12 months, while continuing to fund its operational requirements and growth priorities.

He adds that Harmony’s copper portfolio continued to deliver strong progress, with the CSA copper mine, in New South Wales, Australia, performing ahead of expectations and the Eva copper project in Queensland, Australia, advancing through key development milestones.

He adds that this reinforces Harmony’s strategy to expand its copper production base in Tier 1 jurisdictions.

The CSA copper mine is expected to deliver towards the upper end of guidance, with production of 17 500 t to 18 500 t of copper, cash costs below guidance and recovered grades above guidance.

“These results provide tangible evidence of the value we saw in acquiring a high-grade, producing copper asset in a Tier 1 jurisdiction, while diversifying revenue streams and broadening the group’s earnings base.

“With the capital ventilation project on track, we are advancing the key infrastructure required to unlock CSA’s next phase of value creation and position the mine to grow into a 40 000 t [a year] copper producer,” Nel comments.

Meanwhile, he says the Eva project remains one of the most compelling growth opportunities in Harmony’s portfolio, with a key component in the company’s strategy being to increase copper production in a Tier 1 mining jurisdiction, while enhancing the scale, margin profile and longevity of the company’s asset base. 

On project execution at Eva, Nel also highlights that all long-lead equipment has been secured, major contracts have been awarded and that the project is moving forward in line with Harmony’s disciplined approach to derisking and delivery.

Construction activities are continuing, including work associated with the process plant and related infrastructure.

Harmony has also continued to manage the environmental considerations associated with the Eva project, with the company engaging stakeholders and regulators to ensure responsible project management while maintaining development momentum.

Notably, Nel explains that during land-clearing activities, a protected species was identified within the project area and in keeping with Harmony’s commitment to responsible environmental stewardship and regulatory compliance, clearing activities were paused while the company engaged with regulators, environmental specialists, government stakeholders and other interested parties to determine the appropriate way forward.

He also notes that the latest Morgan Stanley Capital International Environmental, Social and Governance (MSCI ESG) upgrade to ‘A’ further demonstrates the progress the company is making towards embedding sustainable and responsible business practices across the group.

Harmony continues to prioritise safety across its operations, with the company reinforcing its focus on achieving zero harm through ongoing improvements in safety performance, prevention measures and risk management initiatives.

“Safety remains our highest priority and our most important measure of success. While key safety indicators continue to improve, our journey towards zero harm is far from complete.

“We continue to measure progress through both leading and lagging indicators to strengthen prevention and reduce serious incidents. Our commitment remains steadfast: every employee and contractor must return home safely every day,” Nel says.