South African gold mining giant Harmony Gold has achieved remarkable success this year, thanks to its exceptional mining operations, high-quality gold grades, and soaring gold prices. This success comes at a time when the company has not only met but exceeded its own production targets.
In the 12 months leading up to June 30, 2024, Harmony Gold, listed on the Johannesburg Stock Exchange, reported outstanding results across all its operations. The company credits its success to a clear strategy and effective execution, which allowed it to exceed its production goals and benefit from higher gold prices.
Harmony Gold’s production surpassed its revised target, reaching over 1,561,815 ounces (48,578 kilograms) of gold, a 6% increase from the previous year’s 1,467,715 ounces (45,651 kilograms). This achievement was largely due to higher gold grades recovered from its Mponeng mine, the deepest mine in the world, as well as its Mine Waste Solutions operations in South Africa and the Hidden Valley mine in Papua New Guinea.
The quality of the gold mined at Harmony’s operations has also seen significant improvements. At its underground mines in South Africa, the gold grade increased by 6% to 6.11 grams per tonne (g/t), up from 5.78 g/t the previous year. The Hidden Valley mine saw an even greater increase, with gold grades rising by 33% to 1.52 g/t. The Mine Waste Solutions operation also reported a 36% increase in gold grade to 0.166 g/t.
Although the costs associated with mining (known as all-in-sustaining costs, or AISC) rose slightly by 1% to R901,550 per kilogram ($1,500 per ounce), the overall financial performance remained strong due to higher gold production and record prices.
Harmony Gold is focused on continuing its growth by investing in higher-quality and lower-risk mining projects. The company plans to develop more high-grade gold mines, expand its surface mining operations, and increase its international gold and copper assets. This strategy is designed to enhance profitability and reduce risks, according to CEO Peter Steenkamp.
Looking ahead, Harmony expects its profits for this financial year to be higher than the previous year, driven by increased gold production, better gold prices, and boosted output of other minerals like silver and uranium from its Hidden Valley and Moab Khotsong operations.
Harmony Gold is also excited about the potential at its Target North asset in the Free State. Recent exploration has provided new geological data, leading to a more reliable estimate of the mineral resources. The latest findings suggest a resource estimate of 13.8 million ounces of gold from 58.8 million tonnes of ore, with an average grade of 7.29 g/t. This estimate is being reviewed by external consultants and shows promise for future mining efforts.
Due to a change in external auditors from Ernst & Young, there has been a delay in finalizing the valuation of the Target North asset. As a result, Harmony has postponed its financial results presentation from August 28 to September 5.
Harmony Gold’s strong performance and strategic plans suggest that the company is well-positioned for continued success in the years to come, as it builds on its achievements and explores new opportunities in the gold mining sector.
Source: Mining Weekly
