Mako Gold

Harmony Gold has announced that the Department of Mineral Resources has granted consent in terms of section 11(2) of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), to cede the Moab Khotsong mining right to Harmony, fulfilling one of the most important conditions precedent towards the completion of the Moab Khotsong transaction.

“The approval confirms government’s support of the transaction which will enhance the quality of our asset portfolio and increase our profit margins”, notes Harmony Gold CEO Peter Steenkamp.

Harmony Gold’s solid results

Harmony Gold announced that operational excellence has resulted in a solid production performance in the six months ended 31 December 2017, with a 49% increase in headline earnings to 224 SA cents per share compared to 150 SA cents per share for the December 2016 period.

“We are on track to achieve our group production guidance of 1.1 Moz, after producing 560 000 ounces in the six months ended 31 December 2017,” comments Steenkamp.

“Shareholder returns inform every decision we make. We will therefore relentlessly pursue the production of safe, profitable ounces,” he continues.

Gold production for the group for the six months ended 31 December 2017 increased by 191 kg (1%) to 17 418 kg (560 003 oz), compared to 17 227 kg (553 862oz) for the six months ended 31 December 2016.

Gold production from the South African operations increased by 6% for the six months ended 31 December 2017 to 16 756 kg (538 719 oz), compared to 15 812 kg (508 369 oz) for the six months ended 31 December 2016.

All-in sustaining costs for all operations decreased by 2% to R500 248/kg in the six months ended 31 December 2017 when compared to the previous comparable period of 31 December 2016.

In US dollar terms all-in sustaining costs increased by 2% to US$1 161/oz mainly due to the strengthening of the Rand against the US dollar in the six months ended 31 December 2017.

The net profit for the six months ended 31 December 2017 was R897 million ($65 million), compared to R1 539 million ($111 million) for the comparative period which included a gain on bargain purchase of R848 million ($61 million).

Feature image credit: Wikimedia