JSE-listed Harmony Gold Mining Company has informed shareholders that it will meet its production, grade and cost guidance for the financial year to end on June 30, and that it continued to generate "exceptional" operating free cash flow on the back of the recovered grades, a higher rand gold price received and sustained operational excellence.

In a pre-close statement published on June 20, CEO Peter Steenkamp notes that group production is expected to exceed the 1.55-million ounces guided, while all-in sustaining costs will come in comfortably below R920 000/kg, as guided.

Capital expenditure (capex) is likely to be marginally below the guided R8.6-billion, he adds.

"Operational excellence, alongside our safety efforts, has ensured that we recorded another stellar year. We continue delivering excellent underground-recovered grades from our South African operations. I commend each operation for its positive performance. Total underground recovered grades will be higher than the guided 6 g/t.

"This financial year's solid operational performance results from a longer-term strategy implemented in 2016 when I became CEO at Harmony. This growth strategy clearly defined where we wanted to be as a company, placing us on a new trajectory. Our aim is to be the best at what we do; the past year is testimony to that. I believe we achieved this goal, positioning us as the champions of gold mining in South Africa," he comments.

Steenkamp adds that the gold miner's balance sheet has been bolstered and that group operating free cash flow margins have improved, enabling the company to take the Eva Copper project up the value curve.

Our high-grade assets have transformed Harmony's portfolio, giving us a bright and promising future. Our key projects in execution are critical in unlocking significant long-term value for our shareholders and stakeholders. Our balance sheet has been bolstered, and our group operating free cash flow margins have improved, enabling us to take the Eva Copper project, in Australia, up the value curve.

"We have built a solid balance sheet, which remains in a net cash position. Although Harmony has entered a cycle of higher capex, this is necessary to ensure we continue replacing our mineral reserves, while improving the quality of our portfolio.

"Our hedging programme, which allowed us to lock in margins at a higher rand gold price, combined with our balance sheet strength, places us in a fortunate position that all our capital needs are affordable and funded through internally generated cash flows. As a result, we are in an excellent position to pursue our growth ambitions, while rewarding our shareholders through dividends," he says.

He adds that, in planning for the 2025 financial year, Harmony has continued to allocate most of its project capital to its higher-grade, higher-quality, and lower-risk assets.

"This aligns with our strategy of producing safe, profitable ounces and improving margins through operational excellence and value-accretive acquisitions. By growing our higher-grade gold mines, and expanding our surface retreatment business and our international gold and copper assets, we will continue to transform and derisk Harmony," he says.

The group will publish its 2024 financial year results on August 28, at which time it will also provide shareholders with an update on its plans for the 2025 financial year.

Harmony owns and operates various gold operations in South Africa. It also owns the Hidden Valley gold/silver mine and a 50% stake in the Wafi-Golpu copper project, in Papua New Guinea, as well as the Eva Copper project, in Australia.