Harmony Gold, South Africa’s third-largest gold producer, on Friday said it remained “bullish” about the gold price.
“At R250 000 per kilogram, we should have a margin of R100 000 per kilogram,” Harmony said in a presentation to analysts and fund managers.
The gold price continued to fall on Friday morning, with the yellow metal losing $11,72 to trade at $795,68 an ounce, or R265 125,34 per kilogram.
But the gold producer did warn of rising cost pressures.
Harmony said cash costs in the September quarter had risen with unit costs higher in rand-per-kilogram terms.
It said increased labour and store costs as well as a rise in electricity costs after winter and the annual electricity price increase had also contributed.
Harmony said tonnes milled increased quarter-on-quarter and there was an improvement in the recovered grade, resulting in an overall increase in production in the quarter.
Looking ahead, the company said it will focus on growing its project pipeline.
Opportunities in exploration and project areas are most likely in South-East Asia, it said, without revealing whether it would tackle any of these opportunities alone.
“Joint ventures and partnerships may be an element in any transaction,” Harmony said.
At 12.29pm, shares in Harmony were trading 4,4% or R4 lower at R87 on the JSE. — I-Net Bridge