JOHANNESBURG - Harmony Gold Mining Company Limited (NYSE: HMY) shares climbed 9% to $4.87 in premarket trading Today, following the announcement of a robust fiscal first quarter performance. The South African gold miner reported a significant increase in gold production and a reduction in costs, leading to a notable 31% rise in the company's stock since the start of the year.
In the July-September quarter, Harmony Gold saw its gold production escalate by 17%, with nearly all operations contributing to this growth. Notably, South African underground mines exhibited an 18% improvement in grade, alongside a strong output from the Hidden Valley mine. These advancements have propelled the company's revenue up by a third, reaching ZAR14.8 million ($793 million).
Efficiency measures have also played a key role in Harmony's financial uplift. The miner successfully brought down its costs through the utilization of lower-cost surface treatment production methods and by leveraging higher silver and uranium by-product credits.
Looking ahead, Harmony Gold remains confident in its operational targets, reiterating its full-year gold production forecast of between 1.38 and 1.48 million ounces. Furthermore, the company aims to maintain its All-in Sustaining Costs (AISC) below ZAR975,000 per kilogram.
Investors have responded positively to these developments, signaling confidence in Harmony's strategic direction and its ability to maintain momentum in a challenging market environment. The company's focus on increasing efficiency while boosting production levels appears to be paying dividends as it navigates the volatile gold market.
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