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Stock in Harmony Gold (NYSE:HMY) surged by 6.4% in pre-market trading on Thursday following the company’s announcement that it is firmly positioned to reach the upper limit of its full-year production guidance, while maintaining costs comfortably below the projected figures.
Harmony (HMY) reported an impressive production of 820K-835K oz of gold in the six months ending December 31, marking a substantial 12%-14% increase compared to the corresponding period in the preceding year. The company remains bullish on the full-year production estimates, expecting it to reach the upper echelon of a range spanning 1.38M-1.48M oz of gold and gold equivalents.
The mining giant attributed the higher half-year production to better-than-expected South African underground recovered grades, particularly at the Mponeng and Moab Khotsong operations. Additionally, a robust performance by its South African surface-source operations, alongside a strong operational showing from the Hidden Valley mine in Papua New Guinea, significantly contributed to the heightened production levels.
Harmony (HMY) also anticipates that its full-year all-in sustaining costs will range between 830K-855K South African rand/kg ($43,949-$45,272), comfortably below the originally forecasted figure of 975K rand/kg.
