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Harmony Gold achieves 75% of planned production, 'higher than initially expected'

Kitco News

Despite the disruption of COVID-19, Harony Gold (TSX: AR) said today that its South African operations managed to achieve up to 75% of planned production during the last quarter of the financial year, which was higher than initially expected by the company.

The company filed its fiscal year end today.

"Year on year, total annual gold production was 15% lower at 37 863kg, or 1.2Moz, mainly due to the impact of the COVID-19 national lockdown and phased recovery in South Africa," said the company.

Due to lower production year on year, the company said all-in sustaining costs for all operations is expected to be between 17% to 19% higher.

However, with high gold prices the company is expecting to generate more cash.

"It is estimated that the operating free cash flow margin for FY20 may double – from 7% in the previous financial year to about 13% to 15% in FY20."

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