Harmony Gold is positioned to benefit from higher rand gold prices, the mining company said in a statement. This is despite the fact that Harmony Gold has posted a loss in the second quarter of its financial year due to production problems at its key Khusalethu mine and lower gold prices.
“Harmony’s strength has always been its ability to adjust quickly and efficiently to adverse conditions. We have positioned the company to remain sustainable for many years to come, managing costs and production to ensure profitability at all gold prices. Harmony has positioned itself to thrive at current gold prices and provide investors with handsome returns when market conditions improve”, said Graham Briggs, chief executive officer.
Harmony is “sustainable, thriving with gold at the current price, and will continue to finance capital expenditure from working profit. Five of our mines are very profitable at an all-in cost of below US$1 000/oz. Target 1 (US$854/oz), Bambanani (US$742/oz), Joel (US$921/oz), Steyn 2 (US$811/oz) and Phoenix (US$861/oz) are each operating at an all-in sustaining cost of less than US$1 000/oz,” the statement said.