Harmony Gold Benefited Substantially From Mponeng Mine Integration

SEATTLE (Scrap Monster): Harmony Gold announced operational update for the nine months ended 31^st March, 2021. The company delivered another strong set of operational results year-on-year, primarily on the back of successful integration of Mponeng and related assets in South Africa into its portfolio.

The company’s adjusted earnings surged 360% over the previous year to R9.4 billion, while the operating free cash flow was up significantly by 78% to R5.3 billion. The gold production totalled 34,969 kg in the first nine-month period in FY21, higher by 13.5% from 30,814 kg produced during the same period last fiscal. Meantime, the production from South African operations recorded an increase by 15.9% to 31,470 kg. The all-in sustaining costs were $1,416 per Oz. Meantime, the net debts increased by R373 million to R953 million at the end of March this year.

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The sequential year-on-year jump in production as well as free cash flow was due to successful integration of Mponeng as well as higher rand-per-kilogram gold price, the company press release said.

The company is well positioned for the next phase of its growth strategy, supported by healthy balance sheet. It expects boosted cash flow margins and sustained production for many more years to come, aided by a pipeline of cash-enhancing projects.