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Harmony Gold boosts EBITDA 360% on strong production and gold price increase

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(Kitco News) - Harmony Gold Mining (NYSE: HMY), a senior diversified gold producer, reported today that for the nine months ended 31 March 2021 (9M 2021), the company produced 1,124,274 ounces of gold, a 13.5% increase over the corresponding period of 2020 (990,691 ounces).

The company said that production growth was achieved due to a successful integration of Mponeng and related assets, improved grade at Kusasalethu, as well as the introduction of higher grades from Mponeng.

Harmony's AISC for the reporting period increased by almost 16% to R720,572/kg (US$1,416/oz) from R622,458/kg (US$1,298/oz). The primary drivers behind this increase were again royalties on the back of an increase in the Rand gold price and COVID-19 related costs, while the company has also seen an increase in costs relating to safety as it continues on its safety transformation journey.

The company’s adjusted EBITDA jumped 360%, from approximately $132 million for 9M 2020 to approximately $609 million for 9M 2021 due to an improved Rand gold price received and higher average grade and production post acquisition of Mponeng and related assets.

Harmony said that as a result of the major repair work and fixed plant maintenance at Hidden Valley which occurred in the beginning of Q4 FY21, the company feels it prudent to make a small adjustment to its production guidance to 1.50Moz to 1.55Moz from its previous production guidance of 1.56Moz to 1.6Moz for FY21.

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