HomeGoldHarmony a rise in output

Harmony a rise in output

The Doornkop Shaft –
one of Harmony’s
South African
Johannesburg, South Africa — MININGREVIEW.COM – 01 July 2009 – Harmony Gold Mining Company – Africa’s third-biggest producer of the metal – expects gold output to rise by 3% in the quarter ended 30 June 2009.

Revealing this in a statement issued here, Harmony said underground production had improved by 4%, with overall output rising in most of its operations except for Tshepong, Virginia and Kalgold.

Its total cash operating costs had increased by 8% due to higher volumes, one month of winter electricity tariffs and medical severance costs, it added.

Reuters reports that Harmony – the fifth biggest gold producer in the world – said its capital expenditure would be in line with the previous quarter. The company had planned for a gold price of $750/oz, and was well geared against the rand/dollar exchange rate.

The company went on to say that last month it had met its long-stated target of being debt free by mid-2009, after repaying its R1.7 billion convertible bond. It had R1.5 billion in cash by end-April and was still actively looking to buy assets, but had yet to identify any worthwhile mines.