JSE-listed gold miner Harmony Gold has recorded another solid set of results for the second quarter of financial year 2016 with a 10% increase in revenue to R4.57 billion. This is the third consecutive quarter of increased delivery.

Underground grade was 7% higher and gold production was 2% higher. The majority of Harmony Gold’s operations producing higher kilograms and generating net free operational cash flow.

The increase in revenue can further be attributed to a 7% increase in the average R/kg gold price received of R507 490/kg. Harmony’s production profit increased by 84% to R1.29 billion quarter on quarter.

“Higher production means that Harmony’s cash flow is strengthened, our margins are growing, we are able to repay our debt and to fund Golpu. The higher R/kg gold price is simply an added bonus,” says Peter Steenkamp, Harmony Gold’s new CEO.

All-in sustaining costs for all operations decreased by 7% to R434 834/kg in the December 2015 quarter, compared to R466 061/kg in the September 2015 quarter.

Better production results resulted in Harmony recording headline earnings of R74 million.

Harmony Gold’s new CEO

In November 2015 Harmony Gold announced its CEO Graham Briggs would be retiring and agreed to appoint Peter Steenkamp as his replacement. This was effective from 1 January 2016.

“The board is very happy to welcome Peter back to Harmony. Peter worked for Harmony for four years and his last position at the Company was chief operating officer. He has more than thirty years’ experience in the mining industry and should lead Harmony to greater heights,” Harmony chairman Patrice Motsepe said following the announcement last year.

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