Gold production 7% lower, says Harmony Gold

Johannesburg - Harmony Gold, South Africa’s third largest gold producer, said

on Tuesday in an operational update for the nine months ended March that

quarter-on-quarter gold production was 7 percent lower, mainly due to the slow

start-up after the December holidays.

The March quarter is traditionally a difficult production

quarter due to the slow start-up after the festive season. The slow ramp up

after the Christmas holidays also impacted South African production at

Anglogold Ashanti (AGA), the world’s third largest gold producer.

Peter Steenkamp, the chief executive of Harmony, said the

company expects to meet its production target this year.

Steenkamp said the annual gold production guidance of 1.05

million ounces was well in reach, with the year to date production at 812 000

ounces at a cash operating cost of R439 669 a kilogram or US$996 an ounce.

AngloGold Ashanti

said on Monday that its local operations were hit by the slow ramp up after the

Christmas break, fractured ground in some areas and high costs among others.

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