Harmony Gold increases production, revenue and cash flow
Gold producer Harmony Gold has announced that for the three months ended 30 September 2023 (Q1FY24), its total gold production was up 17% to 425,130oz from 363,336oz in Q1FY23 due to strong operating performance across all its operations.
In a press release, the company noted higher average underground recovered grades from its South African underground operations alongside a “very strong” quarter from the Hidden Valley mine in Papua New Guinea.
Harmony Gold added that silver production from Hidden Valley increased by 55% to 993,914oz, while uranium production (by‐product from the gold extraction process at Moab Khotsong) increased by 50% to 70,044kg.
The company also reported a 7% improvement in group all-in sustaining costs (AISC) to US$1,404/oz from US$1,657/oz, as well as a 33% increase in gold revenue to US$793 million from US$654 million.
Importantly, the company’s operating free cash flow increased by 278% to US$174 million from US$50 million, driven by higher recovered grades at Mponeng, Moab Khotsong and Hidden Valley.
“Harmony delivers stellar first quarter. Higher free cash flows, higher recovered grades, higher production, higher gold price received, with lower costs,” the company said.
“While we are only one quarter into FY24, we are confident of achieving our annual production guidance of 1,380,000 to 1,480,000oz, overall AISC guidance of below R975,000/kg and underground grade guidance at 5.60 to 5.75g/t,” it added.
Harmony Gold has operations and assets in South Africa and Papua New Guinea (PNG).
