http://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / South African News RSS ← Back
Gold|Johannesburg|Africa|Flow|Harmony Gold|Mining|Moab Khotsong|Mvuyisi Mayekiso|PROJECT|Safety|Surface|Th Company|Tsepo Libate|Underground|Africa|Papua New Guinea|South Africa|Flow|Locomotive Operator|Mining|Scraper Winch Operator|Hidden Valley|Michael Plaatjies|Peter Steenkamp|Locomotive|Operations
Gold||Africa|Flow|Mining|PROJECT|Safety|Surface|Underground|Africa||Flow||||Locomotive|Operations
gold|johannesburg|africa-company|flow-company|harmony-gold|mining|moab-khotsong-company|mvuyisi-mayekiso|project|safety|surface|th-company-company|tsepo-libate|underground|africa|papua-new-guinea|south-africa|flow-industry-term|locomotive-operator|mining-industry-term|scraper-winch-operator|hidden-valley|michael-plaatjies|peter-steenkamp|locomotive|operations
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Verification Image. Please refresh the page if you cannot see this image.

Sponsored by

Close

Article Enquiry

Harmony Gold net profit plunges, operational cash soars

Verification Image. Please refresh the page if you cannot see this image.
Close

Embed Video

Harmony Gold net profit plunges, operational cash soars

Photo by Creamer Media Chief Photographer Dylan Slater
Harmony Gold CEO Peter Steenkamp

12th February 2019

By: Martin Creamer
Creamer Media Editor

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

JOHANNESBURG (miningweekly.com) – The net profit of Harmony Gold plunged in the six months to December 31, dropping from R897-million for the corresponding period of last year to R75-million.

However, production soared by 34% and operations generated R1.1-billion in free cash flow on the inclusion of the acquired Moab Khotsong gold mine in South Africa and the return to full production of the Hidden Valley gold mine in Papua New Guinea (PNG).

Advertisement

Harmony is on track to achieve yearly production of 1.45-million ounces of gold in the 12 months to June 30 and production profit in the six months to December 31 was 25% up at R3 385-million, compared with R2 712-million in the previous corresponding period.

Th company has nine underground mines, one openpit mine and several surface operations in South Africa

Advertisement

On the safety front, in the three months to December 31, Harmony recorded the best quarterly lost time injury frequency rate ever achieved by its South African operations, at 4.84.

It also reported a 7% increase in underground recovered grade to 5.65 g/t.

Net debt was cut by R333-million to R4.6-billion and the memorandum of understanding agreement for the Wafi-Golpu project in PNG was an important step towards the awarding of a special mining lease.

“We remain committed to our strategy of producing safe, profitable ounces and increasing our margins to ensure our operations benefit from the positive sentiment in the gold market,” Harmony CEO Peter Steenkamp said.

All-in sustaining unit cost guidance for the 12 months to June 30 has been lifted to a range of between R520 000/kg and R530 000/kg.

Sadly, the South African operations had four fatalities when Kusasalethu team leader Michael Plaatjies, Tshepong scraper winch operator Tsepo Libate, Kusasalethu artisan Tsietsi Manoto and Moab Khotsong locomotive operator Mvuyisi Mayekiso lost their lives.

Safety days were held at each South African operation during October.

Gold production for the group for the six months ending December 31 soared to 23 359 kg or 751 008 oz, compared with 17 418 kg (560 003 oz) in the corresponding period of 2017.

Revenue increased by 40% to R3.9-billion and forward gold sale contracts involved 3 577 kg (115 000 oz) being sold at an average price of R654 245/kg.

Production costs increased by 45% to R3.2-billion in the six months owing mainly to the addition of Moab Khotsong and Hidden Valley’s return to production.

Depreciation was higher owing to Hidden Valley's return to full production which contributed R896-million of the increase.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now
Register Close