Harmony Gold has given a bullish assessment of its Hidden Valley and Moab Khotsong investments, saying on Friday these had already helped reduce all-in sustaining costs for the year to end-June. The two investments Harmony pinned its hopes on for higher margins and improved cash generation also assisted with an increase in the underground recovered grade by 8%, the company said. The low-grade gold miner’s headline earnings per share, however, are expected to decline 40%-45% to between R1.64 and R1.79 compared with the prior period. This was largely due to a R5.3bn impairment at its Tshepong Operations, which suffered from cost inflation and a subdued gold price. Low-grade ore Earnings per share are expected to decrease to a loss of between R9.95 and R10.11 from the prior period’s 82c. South African gold miners remain under severe strain amid growing production costs, with many of Harmony’s operations utilising very low-grade ore and reaching the end of operations.
Harmony is t...
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