Harmony Gold bullish on cash flows as it reports increased output in Q3
South Africa's Harmony Gold (JSE:HAR) (NYSE:HMY), the world's fifth largest producer of the precious metal, said Monday that production in the three months to September was about 10% percent higher than the previous quarter.
After losing money for three years to 2015, Harmony is now focused on finding ways to offset falling production at its South African operations.
However, the 514,000 ounces of gold Harmony produced in the six months ended June, were about 10% less than output over the corresponding period of the previous financial year.
The company, which is also South Africa’s third-largest gold miner, noted it continued to benefit from its currency and gold hedge in the period, which — together with higher production — aided strong cash flows.
After losing money for three years to 2015, Harmony is now focused on finding mines able to offset falling production at its South African operations. As part of those plans, the company expects to build a $2.6 billion gold-copper mine Papua New Guinea.
That project, known as Golpu, will add about 500,000 ounces, or about 45%, to Harmony's annual production.
Last month, it became the sole owner of the Hidden Valley mine in Papua New Guinea after partner Australia’s Newcrest Mining (ASX:NCM) agreed to sell its 50% stake in the joint venture to Harmony.
The company, which aims to increase production to 1.5 million ounces over the next three years, said it would publish a full production report for the quarter ended September 30 next month.