A brief announcement from Harmony Gold Mining Co. (ADR) (NYSE:HMY) brought the bulls out from hibernation in the stock, which shot up 6.95% to close at $3.23 on Tuesday.
Nearly 5.12 million shares were traded versus the average volume of 4.37 million shares.
The company which has operations in South Africa and Papua New Guinea, said gold production during the quarter ended September 30 was up 10% compared to the previous quarter.
Harmony Gold Mining Co. (ADR) (NYSE:HMY) boosts guidance
Apart from the high production, the company also asserted that it benefited from its currency and gold hedges which contributed to better cash flow. It also said that underground grade at above 5 g/t was maintained during the quarter.
The company produced 1.1 million gold ounces in the financial year ended June 30, meeting its guidance. It now plans to boost production to 1.5 million ounces per year by 2020.
Harmony Gold Mining Co. (ADR) (NYSE:HMY) snaps up Hidden Valley mine in Papua New Guinea
In September Harmony Gold Mining bought out partner Newcrest Mining’s share in the Hidden Valley joint-venture, which includes the Hidden Valley Mine in Papua New Guinea for the princely sum of $1, but will of course assume all liabilities and expenses including environmental liabilities. Harmony now has 100% ownership of the Hidden Valley Mine.
“Our acquisition of the Hidden Valley mine is aligned with our overall aspiration to increase our annual production profile to 1.5Moz within three years. We believe that Hidden Valley has the potential to contribute approximately 180 000oz gold per annum to Harmony’s production profile at an all-in sustaining cost of less than US$ 950/oz within the next three years,” Peter Steenkamp, chief executive officer of Harmony said at the time.
According to a company presentation, Harmony shares have handily outperformed shares of Goldcorp, Newcrest, Newmont, Barrick and Spot gold over the period July 2015 to August 2016.