Harmony Gold ups production 32% in September quarter, on track to meet annual guidance
(Kitco News) - Harmony Gold (NYSE: HMY) reported today that its September quarter 2021 (Q3 2021) gold production of 413,714 oz was 32% higher than a year ago (Q3 2020: 313,725 oz), primarily due to improved production at Moab Khotsong, Kusasalethu, Doornkop and surface source business.
Encouragingly, the company said that total production excluding Mponeng and related assets and Unisel mine (which was closed in October 2020) delivered an additional 6% of gold production compared with the September 2020 quarter as a result of higher tonnes milled as production normalised post the Covid-19 disruptions and improved efficiencies on the back of various optimization projects.
Harmony added that operating free cash flow for Q3 2021 was down 33% to R921 million (US$63 million) compared to R1 230 million (US$87 million) for the previous three-month period ended 30 June 2021.
Importantly, the company said that its balance sheet remains strong, with net debt to EBITDA now at 0.05 times at the end of the quarter (0.1 times in the previous quarter) as Harmony further reduced its net debt by R139 million (US$9 million) to R454 million (US$30 million).
The company pointed out that its production guidance for FY22 remains unchanged and is estimated to be between 1.540 Moz and 1.630 Moz at an all-in sustaining cost of between R765,000/kg to R800,000/kg.
"As a 1.6 million ounce gold producer with an exciting pipeline of projects, we will continue on our growth trajectory to benefit our stakeholders for many years to come. With a re-engineered portfolio, we are a new Harmony - committed to doing what we have always done - mining sustainably and putting our people first," the company said in a statement.
By Vladimir BasovFor Kitco News
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