Johannesburg – Harmony
Gold Mining Company says its annual production target is in reach.
In a statement to
shareholders on Tuesday, the listed miner said it was on track to reach 1.05
million ounces.
The company says, in its
update for the nine months to March, it has produced 812 912 ounces so
far.
This was at a cash
operating cost of R439 669/kg, or S$996 an ounce.
The miner, which in
September bought 100 percent of Hidden Valley, a gold and copper project in
Papua New Guinea, after buying out its partner, Newcrest Mining, Australia’s
biggest gold producer for $1, says it recorded an 8 percent operating free cash
flow margin.
This figure, for the year
so far, was strengthened by the gold hedging agreements that are in place, it
says.
Harmony adds its underground
average recovered grade remains above 5g/t. The all-in sustaining costs (AISC)
for the nine months ended March 31 is $1 170/oz or R516 630/kg.
Read also: Harmony Gold acquires Hidden Valley
However, quarter on
quarter gold production was 7 percent lower, mainly due to the customary slow
start up after the December holidays, it says.
CEO Peter Steenkamp notes
the “fundamentals underpinning our mine plans enable us to achieve our annual
production guidance. Safety, costs and grade continue to be a focus and higher
production in the fourth quarter will drive down unit costs".
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