Harmony in SA and dissonance offshore

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Harmony in SA and dissonance offshore
Credit: © Reuters.

Gold miner Harmony (JO: HARJ ) has updated the market on its production for the six months ended December 2021.

Gold production in South Africa was similar to the first half of the 2021 calendar year.

This is the right period for comparison as the Mponeng asset was in operation throughout 2021, but for only part of the corresponding six-month period in 2020. Rand per kilogram cost guidance of R765,000/kg - R800,000/kg is in line with original guidance.

The story in the Hidden Valley operation in Papua New Guinea is less enjoyable to read, with a 26% decrease in production due to geotechnical issues. To make it worse, 6kms of overland conveyor belt was damaged in January 2022 and will be replaced, so the full year impact on production will be significant.

Due to a nasty downward revision in production guidance, the group all-in sustaining cost per kilogram has been revised upwards by more than 5%.

Full results will be released on 28 February.

The share price fell 2.6% in response to the news, taking the 12-month drop to over 10%. Harmony really hasn't lived up to its beautiful name for shareholders unless you bought around 3 years ago, in which case you are up around 150%.I hold Harmony in my gold portfolio (along with a few others). I'm sad to report that I wasn't one of the fortunate punters who bought at the right time.

Disclaimer: the author holds shares in Harmony

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  • Louis Abreu @Louis Abreu
    Its really been dissapointing the share price
    Like 1