HomeGoldHarmony raises production

Harmony raises production

Site of Harmony’s
Hidden Valley gold
mine in Papua New
Johannesburg, South Africa — MININGREVIEW.COM — 02 November 2009 – Harmony Gold Mining Limited “’ Africa’s third-largest producer of the metal “’ beat its own output guidance during the first quarter of its 2010 financial year, increasing production by 5.6 % in the three months to 30 September 2009. Its earlier forecast had predicted a 4% rise.

Output climbed to 373 431 ounces in the September quarter, from 353 752 ounces in the previous three months, the company said in a statement to the JSE stock exchange news service.

The statement added that production might expand by about 7% this quarter as the company’s Hidden Valley mine in Papua New Guinea ramped up output.

Production might rise from 373 431 ounces to about 400 000 ounces in the fiscal second quarter ending 30 December 2009, CEO Graham Briggs confirmed in an interview here.

Bloomberg News reports that Biggs is boosting output to mitigate the effect of rising wages and electricity costs. The company, which has all but one of its mines in South Africa, is also acquiring assets to help reach its goal of producing 2.2 million ounces by 2012, compared with 1.46 million ounces in fiscal 2009.

Harmony posted a first-quarter net loss of R29 million compared with net income of R238 million the previous quarter. While the dollar gold price rose to a record during the quarter, the South African currency advanced against the dollar, resulting in a decline in the gold price Harmony received.