HomeNewsHarmony Gold maintains 1.1 Moz production guidance

Harmony Gold maintains 1.1 Moz production guidance

The company plans to maintain this guidance while focusing on further improving the safety at its operations, having suffered safety setbacks at its operations during this period, says Harmony Gold CEO Peter Steenkamp.

The miner also plans to repay all of its debt by the end of calendar year 2016.

Production during the March 2016 quarter was 6% higher than the comparative quarter, with an above guidance grade of 5 g/t.

While the strong R/kg price received during the quarter of about R600 000/kg, Harmony experienced strengthened cash flow.

Although Harmony’s net debt remains at R1.7 billion, it is down by 35% from R2.5 billion at the end of the previous quarter.

Foreign exchange hedging contracts that were entered into in February 2016 is also providing cash certainty.

Supported by stronger cash flows and mining above its guided grade, the company is well positioned to further benefit from the higher gold price.

Cash operating costs including capital for the March 2016 quarter is approximately R455 000/kg or US$900/oz, which is well below the average gold price for the quarter, which currently stands at an average $1 200/oz.

Harmony, which now reports twice a year instead of four times, will publish its financial results for the six months and year ended 30 June 2016 on 17 August 2016.

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.