Production at Harmony’s underground mines in South Africa is approximately 15% higher than the previous quarter, writes Vicky Sidler.Harmony Gold, the JSE– and NYSE-listed gold mining company, reports that Hidden Valley’s production has increased by about 7%. Harmony’s total production is expected to be around 12% higher quarter-on-quarter, mainly due to an increase in both tonnes and grade.
During the September quarter there were increases in labour costs (following the new two year wage agreement) and electricity costs (winter tariffs). These cost increases were more than off-set by the increased production and savings in overall costs, resulting in our cash cost per kilogram being 6% to 8% lower quarter on quarter.“We are pleased that we have been able to deliver another solid performance for the quarter. That production is up in South Africa despite the labour disruptions experienced around wage negotiations, is testimony to our commitment to deliver in line with our guidance, and a credit to our management and employees,” said Graham Briggs, chief executive officer of Harmony.