Harmony CEO Graham Briggs
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Harmony Gold has repaid R1.1-billion of its debt, comprising $50-million on its $250-million revolving credit facility (RCF) and R400-million on its R1.3-billion facility.
Despite the gold price trading around multiyear lows in dollar terms, Harmony, with over 90% of its operating revenue generated in South Africa, benefitted from the weak rand, which more than offset the impact of the low dollar gold price.
Its mining operations also continued to perform in line with plans post the September quarter. An increase in the rand gold price during October and November further strengthened the company’s cash position.
“Our hard work of the last couple of years are finally paying off, enabling us to reduce our debt, strengthen our balance sheet and provide us with even more certainty that we can fund the Golpu project,” CEO Graham Briggs said.
The Papua New Guinea-based project would have an approximate first-stage life of 27 years, with production peaking at 320 000 oz/y of gold and 150 000 t/y of copper in 2025.