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South Africa’s Harmony Gold expects to exceed full-year production target

Harmony Gold, a South African gold mining company, announced on Monday that it anticipates exceeding its full-year production target of 1.5 million ounces by June 2025. 

This positive outlook comes despite the company experiencing lower output during the first half of the financial year, according to a Reuters report. 

The company’s ability to project exceeding its initial target suggests that they are confident in its operational capabilities and expects a significant increase in production during the second half of the financial year. 

This news may be well-received by investors and stakeholders, as it indicates the company’s potential for growth and profitability.

Production estimates

In a recent update, Harmony, a leading gold mining company and the largest producer of gold in South Africa by volume, announced its production estimates for the first half of the fiscal year. 

The company stated that it expects its gold production for the six months ending on December 31, 2024, to fall within the range of 790,000 ounces and 805,000 ounces, according to the report. 

This projection provides valuable insight into the company’s operational performance and its contribution to the overall gold supply in South Africa.

The decrease in production from 832,349 ounces in the previous year to the current figure can be attributed to a number of factors. 

Primarily, this decline is a result of strategic decisions made by Harmony to decrease output from its South African underground mines. 

Additionally, the Hidden Valley mine in Papua New Guinea, which had experienced a surge in production during the previous reporting period due to the processing of ores with a higher gold concentration, has also seen a reduction in output, according to the Reuters report.

This combination of planned reductions and the normalization of production levels at Hidden Valley has resulted in the overall decline in Harmony’s gold production.

Recovered gold likely to surpass guidance

For the latter half of the financial year, it is anticipated that the recovered grades from South African underground gold mining operations will surpass the projected guidance of 5.80 grams per ton, Reuters said. 

This positive variance is primarily attributed to the exceptional performance of the Mponeng mine, recognized as the world’s deepest mine. 

The Mponeng mine’s substantial contribution to the overall recovered grades highlights its operational efficiency and the richness of its ore body. 

This improved performance in the second half of the financial year is a positive indicator for the South African mining sector, suggesting potential for increased profitability and resource extraction.

Harmony’s target for the current financial year is between 1.4 million and 1.5 million ounces. In the prior financial year, ending in June 2024, the company produced 1.56 million ounces.

The company said in its half-year production report.

The ompany remains on track to exceed the full-year production guidance.

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