Harmony Gold (NYSE: HMY; JSE: HAR) says it will spend 7.9 billion rand ($560 million) to lengthen the life of the Mponeng mine in South Africa.
The company acquired the mine from AngloGold Ashanti (NYSE: AU) four years ago. The new investment will extend Mponeng’s life from seven to 20 years, with work due to begin in 2025 at the site just west of Johannesburg.
Harmony also stated its financial and operating results for the six-month period to Dec. 31 on Wednesday.
The miner saw a 14% increase in total gold production to 832,349 oz. from 733,325 oz. 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 the price of gold rose 7.5% to US$2,062.86 on Dec. 29. As a result, it declared a record interim dividend of 1.47 rand per share.
Guidance for the group’s production this year remains unchanged at 1.4 million oz. to 1.5 million ounces.
“Strong commodity prices have provided Harmony with good tailwinds,”CEO Peter Steenkamp said. “Improved safety, good mining discipline and operational flexibility with a stable and a predictable cost structure remain fundamental.”
Shares of Harmony Gold closed less than 1% lower on Wednesday in Johannesburg at 108.48 rand, valuing the company at 67.3 billion rand.
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