https://www.miningweekly.com

Million-ounce-plus gold output well within reach – Harmony

19th May 2017

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

Gold mining company Harmony Gold said last week that its forecast of 1.05-million ounces of production in the 12 months to the end of June is “well [within} reach”.

In recent months, Harmony has lost production at its Kusasalethu gold mine, in Carletonville, owing to unprotected strikes.

Mining Weekly reported in March that Harmony aimed to increase its yearly gold production to 1.5-million ounces over the next three years by expanding its operations in South Africa and Papua New Guinea (PNG).

It has nine underground mines and three surface operations in South Africa, as well as the Hidden Valley gold mine, in PNG.

In the nine months to March 31, the Johannesburg- and New York-listed company produced 812 000 oz at an all-in sustaining cost (AISC) of $1 170/oz and a received gold price of $1 299/oz.

In kilograms, gold output totalled 25 262 kg in the nine months to March 31, at an AISC of R526 630/kg and a price received of 573 229/kg.

Cash operating costs were $996/oz or R439 669/kg, giving an 8% operating free cash flow margin in the nine months to March 31, strengthened by the company’s gold hedging agreements.

Early last year, Harmony entered into foreign exchange rand-dollar hedging contracts that fixed the exchange rate on $400-million (R6.2-billion) of gold sales.

The hedging contracts were spread over 12 months at an average minimum price of R15.59 to the dollar and an average maximum price of R18.60 to the dollar.

The average recovered underground grade in the nine months to Mach 31 was 5.03 g/t.

The 7%-lower quarter-on-quarter gold production was mainly due to the customary slow start after the December holidays.

The AISC rose by 5% in kilogram terms to R529 409/kg and by 10% in ounce terms to $1 246/oz.

Safety, costs and grade continue to be a focus and higher production in the fourth quarter is set to lower unit costs, Harmony CEO Peter Steenkamp said in a release to Creamer Media’s Mining Weekly.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ASTPM
ASTPM

Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...

VISIT SHOWROOM 
AirNox Pty Ltd
AirNox Pty Ltd

AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.049 0.932s - 110pq - 2rq
Subscribe Now