HomeGoldHarmony Gold delivers stellar production results, but safety challenges need focus

Harmony Gold delivers stellar production results, but safety challenges need focus

South African gold miner Harmony Gold has exceeded its annual FY18 production guidance by 4% – thanks largely to the recent addition of the Moab Khotsong operation. But recent fatalities at its mines require additional focus on safety.

The company produced 1.228 Moz, compared to its guidance of 1.18 Moz. The South African operations in particular recorded a 14% increase in gold production of which Moab Khotsong produced 105 900 oz (contributing 10% of the increase in SA gold production) for the four months the operation has been included in Harmony’s asset portfolio.

In addition to this, Harmony Gold has reported an 8% increase in underground recovered grade to 5.48 g/t. This is the sixth consecutive year of increasing grade.

The company notes that it has contained costs and expects its all-in sustaining cost to also be below its guidance of R520 000/kg.

“We are extremely proud of our production performance. We recognise that safety requires increased attention and we are committed to continue driving a culture of safety. Safety, costs and production are the only variables that we can control and we will build on the momentum achieved in FY18,” says Peter Steenkamp, CEO of Harmony.

The company has in the last month reported two fatalities from its South African operations – at Khusasalethu and Tshepong.

Annual operating and financial results for the year ended 30 June 2018 will be announced on 21 August 2018.