Harmony says this increase is due to an increase in both volumes and recovered grade.
Gold production is 6% to 8% higher than the corresponding quarter in the previous financial year.
The planned waste stripping of cutbacks 5 and 6 at Hidden Valley is ahead of schedule and will be completed towards the end of November 2017.
Despite the impact on Hidden Valley’s gold production,Harmony’s total gold production increased by 3% to 5% quarter on quarter and the corresponding quarter year on year.
“Focus on safety, operational excellence at our South African operations and delivery at Hidden Valley in the second half of FY18 will ensure that we remain on track to meet our production guidance,” says Harmony CEO, Peter Steenkamp.
In August Harmony reported a 35% increase in headline earnings. The company had secured cash margins through a successful hedging strategy, realising gains of R1 747 million.
In its annual report released in August Harmony stated:
- Harmony Gold achieved a milestone fatality free quarter achieved during the June 2017 quarter; annual fatality rates improved
- Met production guidance for a second consecutive year; underground grade increased for fifth consecutive year to 5.07g/t
- 35% increase in headline earnings per share (HEPS) of 298 SA cents
- 18% reduction in net debt to R887 million
- Growing ounces – acquired full ownership of Hidden Valley – stages 5 and 6 investment on track
- Sustainable and inclusive solutions sought to address silicosis claims
- A final dividend declaration for the financial year of 35 SA cents
Feature image credit: Harmony