JSE-listed Harmony Gold remains on track to meet the upper end of its full-year production guidance of between 1.4-million and 1.5-million ounces, while all-in sustaining costs (AISC) remain comfortably below guidance at between R960 000/kg and R985 000/kg, the company announced on February 3.

Harmony reported that total gold production for the six months ended December 31, 2024 – the first half of the company’s 2025 financial year – was between 790 000 oz and 805 000 oz.

The company said its South African underground recovered grades were expected to be higher than the guided 5.80 g/t, driven mainly by a strong performance from Mponeng.

“We are confident that full-year AISC will remain within the guided range of between R1.02-million and R1.1-million a kilogram for the 2025 financial year. This is a function of the planned lower production, inflationary increases and higher sustaining capital,” Harmony said.

As guided, total production for the first half of the 2025 financial year, in comparison to production for the first half of the 2024 financial year, was down slightly, mainly owing to the planned lower production from the South African underground optimised portfolio and Hidden Valley, in Papua New Guinea, which benefitted from the high-grade 'Big Red' part of the orebody in the previous reporting period.

“Our balance sheet has continued to strengthen, with a significant increase in our net cash position from what was reported in November. Harmony remains well positioned to fund our various approved capital projects,” the company said.

Harmony said all of its underground operations, except Target 1 in the Free State, which is still in a turnaround process after being recapitalised, generated meaningful, positive operating free cash flows.

The South African surface-source operations, along with Hidden Valley, also performed well and contributed meaningfully toward the strong operating free cash flows in the period.

Owing to the performance, Harmony said its production, cost and grade guidance for the 2025 financial year remained unchanged.

"The first half of this financial year has been one that has yet again shown that consistently and sustainably delivering safe, profitable ounces and generating improved operating free cash flows remain core to what Harmony does.

“Striving for excellence in all we do will enable us to meet all of our strategic objectives,” Harmony’s new CEO Beyers Nel said.