HARMONY Gold said on Monday rainfall and safety-related stoppages in the third quarter resulted in 6% lower production year-to-date. With three months to go before the conclusion of its 2025 financial year, gold production stood at some 1.11 million ounces.
Harmony said the third quarter’s lower production – down 10% year-on-year to 314,142 oz – “negatively impacted” full year costs. Third quarter cash costs increased 19% to R984,143 per kilogram while all-in sustaining costs for the three months were 21% higher at R1.17m/kg.
Production wobbles notwithstanding, Harmony enjoyed the benefits of gold market which remain unprecedentedly buoyant. The gold price scaled a fresh high of $3,424/oz during the period, taking Harmony’s received price in rands for the year-to-date to R1,454.291/kg, a 25% increase over the average in Harmony’s 2024 financial year. As of the close of the third quarter, net cash was 49% higher at some R10.8bn compared to net cash of R7.3bn as at December 31.
In addition to continued record gold pricing, the group’s high grade mines Mponeng and Moab Khotsong lifted recoveries again. As a result, Harmony has adjusted recovered grade guidance for the year to “above 6g/t” from 5.8g/t previously.
Beyers Nel, CEO of Harmony said the company was resilient. “We remain on track to meet our full-year production, grade and cost guidance, demonstrating our resilience in a dynamic global environment,” he said in Harmony’s production update.
The group is sticking to AISC guidance of between R1,02m to R1.1m per kilogram with a quarter to go. Gold production is forecast to come in at 1.4 to 1.5 million oz for the year.
Shares in the company gained 4.1% in late Johannesburg trade taking the stock to R293,05 per share, and a market value of just under R185bn – a level scarcely believable value three years ago when the gold price was trading under $2,000/oz.
Accounting for its difficult third quarter, however, Harmony said “devastating safety incidents” resulted in stoppages at its Joel, Doornkop and Mponeng mines. Meanwhile heavy rain disrupted electricity supply to its West Wits operations while “other rain damage” to Eskom infrastructure hit production at Harmony’s Mponeng, Doornkop and Kusasalethu mines.
In Harmony’s Vaal River Region, the excessive rainfall negatively impacted surface operations at Harmony’s Mine Waste Solutions. Flooding in low-lying areas prevented the firm from mining planned higher-grade sections.
