Harmony delivers an outstanding half-year operational performance
Johannesburg – Harmony has again demonstrated that it is an excellent operator and a global gold mining leader, with a copper footprint. While strong commodity prices have provided Harmony with good tailwinds, improved safety, good mining discipline and operational flexibility with a stable and a predictable cost structure, remain fundamental to creating the long-term value expected by its stakeholders, said Peter Steenkamp, chief executive officer of Harmony.
Key highlights of H1FY24 are:
- 226% increase in headline earnings
- Earnings increased by 221%
- Record operating free cash flow, up 265%
- A record interim dividend declared of 147 SA cents per share (December 2022: nil)
- 11% increase in underground recovered grades to 6.29g/t from 5.68g/t
- 5% decrease in group all-in sustaining costs (AISC) to R843 043/kg (US$1 403/oz) from R890 048/kg (US$1 598/oz)
- 35% increase in group revenue to R31 415 million (US$1 681 million) from R23 259 million (US$1 343 million)
- 14% increase in total gold production to 25 889kg (832 349oz) from 22 809kg (733 325oz)
- 30% increase in production from Mponeng as a result of improved underground recovered grades
- Mponeng extension project approved, extending mine life from 7 to 20 years and increasing margins
- Hidden Valley generated operating free cash flow of R1 769 million (US$95 million), due to excellent recovered grades, compared to -R69 million (-US$4 million)
- 18% increase in average gold price received to R1 141 424/kg (US$1 900/oz) from R963 464/kg (US$1 730/oz)
- Strong, flexible balance sheet now in a net cash position of R74million (US$4 million)
- FY24 production, grade, cost and capital guidance remains unchanged
FY24 group production and cost guidance
FY24 production guidance for the group remains unchanged at between 1 380 000 ounces to 1 480 000 ounces. FY24 AISC guidance also remains unchanged at less than R975 000/kg. Underground grade guidance remains unchanged at 5.60g/t to 5.75g/t. Harmony anticipates annual production and grade to be at the upper end of guidance, while costs will remain well below the guided level.
