Harmony Gold (NYSE: HMY) will spend 7.9 billion rand ($410 million) to extend the life of the Mponeng mine in South Africa.
The company acquired the mine from AngloGold Ashanti Ltd. four years ago. The new investment will extend Mponeng’s life from seven to 20 years, with work due to begin in 2025.
Harmony also announced its financial and operating results for the six-month period ended 31 December 2023 on Wednesday.
The miner saw a 14% increase in total gold production to 832,349 ounces, up from 733,325 ounces during the same period in 2022. Output was buoyed by a 30% increase in production from Mponeng.
Harmony’s profit tripled to 5.96 billion rand in the final six months of 2023 compared to a year earlier. As a result, it will pay a record interim dividend. The gold miner declared an interim payout of 147 rand cents per share.
FY24 production guidance for the group remains unchanged at between 1,380,000 ounces to 1,480,000 ounces.
“While strong commodity prices have provided Harmony with good tailwinds, improved safety, good mining discipline and operational flexibility with a stable and a predictable cost structure, remain fundamental to creating the long-term value expected by our stakeholders,” said Peter Steenkamp, chief executive officer of Harmony.
Shares of Harmony Gold rose 1.1% by 11:30p.m. EDT. The company has a market capitalization of approximately $3.5 billion.
Source: MINING.COM – Read More
