Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Harmony Gold says its gold production increased by as much as 14% in the six months to December 2023, driven by higher grades at its South African mines and a strong operational performance in Papua New Guinea.
The South African miner said in a trading update gold production for the half year was between 820,000-835,000 ounces, an increase of between 12% and 14% compared to the six months ended December 2022.
Harmony said the production increase was driven by higher underground grades at its Mponeng and Moab Khotsong mines in South Africa and “an excellent operational performance” at Hidden Valley mine in Papua New Guinea. Its waste retreatment operations in South Africa had also posted a strong performance, it added.
Harmony’s all-in-sustaining costs (AISC) – an industry measure – will be between 830,000-855,000 rand ($44,000-$45,000) per kilogramme of gold for the half-year, below the guided AISC of 975,000 per kilogramme, as a result of the production increase.
The miner has left its production and cost guidance for the 2024 financial year unchanged at the upper end of 1.38 million ounces and 1.48 million ounces of gold at an AISC of below 975,000 rand per kilogramme.
Harmony is scheduled to publish its half-year results on Feb. 28.
($1 = 18.9004 rand)
(By Nelson Banya; Editing by David Evans)
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