HARMONY Gold said it had exceeded its annual production target by 4% – the third successive year it had met or beaten its expectations for the year – producing 1.23 million ounces – a performance in which the recently acquired Moab Khotsong made a healthy contribution. Guidance had been put at 1.18 million oz.
The firm’s South African mines recorded an 14% increase in output with Moab Khotsong, acquired from Anglogold Ashanti for $300m and included in Harmony’s numbers for about four months, contributing 105,900 oz – equal to about 10% of overall production.
There was also an 8% increase in underground recovered grade, the sixth consecutive year an lift had been produced, said Harmony.
It was commenting in a 2018 financial year production update. The company is due to report its full financial numbers for the period on August 21. All-in sustaining cost were expected to be below guidance of R520,000/kg, the company said.
Peter Steenkamp acknowledged the production achievement, but expressed concerns about safety lapses, saying that “… safety requires increased attention and we are committed to continue driving a culture of safety.
A $200m bridge facility raised for the Moab Khotsong transaction has been fully repaid utilising available cash resources and the proceeds received from the share placement, the company said.
