KEY POINTS
- Harmony Gold reports record revenue, boosted by silver and uranium production
- Surface operations from mine tailings show impressive growth and profitability
- Harmony Gold plans major expansion into copper mining within the next decade
- Significant investments made in existing mines and renewable energy projects
- The company achieved strong financial performance despite global economic challenges
Harmony Gold, having been in the business of extraction of gold for almost 75 years has shifted its focus on other less popular and less sought-after gems: silver and uranium.
While gold still reigns supreme in Harmony’s dynasty, these ‘so-called sidekick’ metals are gradually blooming. A 39% increase in Silver production generated R1.7 billion ($90.1 million), while a 13% in Uranium production added R900 million ($47.7 million) to the company’s treasury.
Even with this increase, Harmony is not resting on its oars. The company has also shown interest in a copper-clad horizon with plans to obtain 20% of its revenue from copper within 10 years. This strategic pivot comes as CEO Peter Steenkamp is about to retire from his position, having led the company for 8 years.
A Golden Touch for Tailings
One of the most astonishing success stories of Harmony Gold can be traced to its ability to recover gold from old mine dumps or tailings. These neglected asset classes are emerging as gold-mine in their own right with the surface division of the company recovering an astonishing 9,000 kg of gold which is 21% more than what was recorded in the previous year.
“Our surface operations delivered a phenomenal performance,” Harmony COO Beyers Nel said proudly. The practice of recovering gold from tailings is not only cost-effective, but it also provides the company with free cash flow close to R2.6 billion.
The company is considering the possibility of opening new gigantic tailings reprocessing facility in the Free State province of South Africa, where about 5.7 million ounces of gold lay buried, Nel boldly goes this way – “We believe there’s good potential to remine our old tailing dams in South Africa for possibly another 100 years.”
Copper Dreams and Green Schemes
While gold remains the primary source of revenue for Harmony Gold, the company is setting its gaze the copper as well. The Eva Copper project in Australia and the long-awaited Wafi-Golpu venture in PNG have been set to widen Harmony’s portfolio base.
In order to drive this change, the company has set aside an all-time R10.8 billion ($572.4 million) in capital expenditure, targeting not only its copper aspirations but also breathing new life into established South African gold mines like Moab Khotsong and Mponeng.
Mining Weekly reported that the company is not only focused on increasing its revenue. It is also innovating in terms of sustainability, as 30 MW of renewable energy is already in operation and a staggering 500 MW of more renewable energy is in the pipeline.
In a year full of uncertainty across the globe, Harmony decided its own destiny. The company beat its production targets producing a total of 1.65 million ounces of gold.
