Harmony Gold more than doubles operating free cash flow

Harmony Gold, a leading gold mining company, has reported a significant 60 per cent increase in full-year headline earnings per share, marking a momentous day filled with good news and exceptional numbers. In a recent interview with CNBC Africa, Peter Steenkamp, the CEO of Harmony Gold, discussed the company's exceptional performance and future prospects. Steenkamp expressed confidence in the sustainability of the company's performance, attributing the strong results to the momentum built over the past few quarters and improvements in operational efficiency. The company's ability to capitalize on a favorable gold price environment and enhance its grades has significantly contributed to its success. Steenkamp highlighted the closure of the Bomanani mine, which led to improved grades and well-controlled costs, as key factors driving the positive results. The company's commitment to operational excellence and cost management has been reflected in a 5% decrease in total costs and a 6% reduction in all-in costs, garnering attention from the market and investors. Harmony Gold's strategic focus on renewable energy sources, such as solar power, has paved the way for cost efficiencies and sustainability in the face of external factors like currency fluctuations. Steenkamp acknowledged the impact of the fluctuating Rand on costs, emphasizing the company's emphasis on controlling variables within its control to mitigate risks and drive profitability. Despite challenges like consumables and diesel consumption, particularly at the Hidden Valley mine in Papua New Guinea, Harmony Gold remains optimistic about maintaining cost controls in the near future. Steenkamp also addressed the company's deep level mining operations, notably the Mponeng mine, which extends 3.8 kilometers into the ground. Emphasizing safety as a top priority, Steenkamp reassured that all mining activities are conducted with rigorous safety measures and adherence to industry best practices. The potential extension of Mponeng's lifespan by another 25 years presents significant opportunities for economic growth and sustainability in the region. When queried about the scalability of such operations across other mines in South Africa, Steenkamp highlighted Harmony Gold's track record of extracting value from previously abandoned mines. The company's successful revitalization of mines like Moab Katsong and Mponeng underscores its expertise in extending the lifespan and profitability of gold mining operations. Looking ahead, Harmony Gold remains committed to identifying high-quality investment opportunities that align with its strategic objectives and deliver sustainable returns. With a focus on operational excellence, safety, and innovation, Harmony Gold is poised to continue its trailblazing journey in the gold mining industry, setting new standards and redefining the future of deep level mining operations in South Africa and beyond.