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Harmony Gold reports lower production in 9M FY22, all-in sustaining costs jump 20%

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(Kitco News) -Harmony Gold (NYSE: HMY), a senior diversified gold producer, announced today that for the nine months ended 31 March 2022 (9M FY22), the company produced 1,104,598 oz of gold, down 2% compared to 9M FY21 (1,124,274 oz).

The company said that overall production was impacted in the third quarter as a result of the Hidden Valley overland conveyor belt failure, adverse ground conditions at Moab Khotsong, and safety-related stoppages at Mponeng and Bambanani as a result of seismicity.

However, the company said that its South African operations delivered a 2% increase in production to 1,030,459 oz for 9M FY22 from 1,011,778 oz for 9M FY21.

Harmony explained that much of this increase was attributable to the additional three months’ production from Mponeng and related assets in this nine-month period compared to only six months’ production in the comparable period.

Importantly, the company reported that all-in sustaining costs for the period increased 20% year-over-year to $1,703/oz. Most of the increase is attributable to the acquisition of Mponeng and related assets in financial year 2021, as well as the reduced production as a result of the overland conveyor belt failure at Hidden Valley.

Harmony Gold added that with one quarter’s production remaining for FY22, it is confident that the company will achieve its previously revised annual guidance (announced in February 2022) of 1,480,000 to 1,560,000 oz in total production.

Harmony Gold has operations and assets in South Africa and Papua New Guinea (PNG). The company's assets include one open pit mine and several exploration tenements in PNG, as well as 10 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, Harmony owns 50% of the significant Wafi-Golpu copper-gold project – a tier 1 asset in a joint venture in PNG.


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