Harmony Gold stuck to its full-year production after a slow start to its 2019 financial year in which costs ballooned because of higher winter electricity prices and labour costs. Harmony reported production and cost data for its mines in SA and Papua New Guinea for the September quarter, which showed a 2% fall in gold output to 378,510oz compared with that of the previous three months and an 8% increase in all-in sustaining costs to R526,747/kg. These two quarters include the Moab Khotsong mining complex near Orkney in the Free State, which was added to the Harmony portfolio in March in a $300m deal with AngloGold Ashanti. It is the largest gold mine in Harmony’s stable.
Year on year, Harmony’s September quarter production grew 30% because of the inclusion of Moab Khotsong as well as the Hidden Valley gold and silver mine in Papua New Guinea reaching commercial levels of production from June. Nedbank analysts Arnold van Graan and Leon Esterhuizen said in a note that Hidden Va...
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