Tshepong South

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  • At 18:44pm, 30 Jan 2025

Overview

Tshepong South is located in the Free State, near the town of Welkom, some 250km from Johannesburg. Tshepong South exploits the Basal reef with the B Reef mined as a high-grade secondary reef and uses the conventional undercut and opencut mining method. Rock from Tshepong South is transported via a railveyor system to Nyala shaft, from where it is hoisted to surface. Mining is conducted at depths of 1 500m to 2 300m. Ore mined is processed at the Harmony One plant, with gold recovered using the gold cyanide leaching process.

As at 30 June 2024

  • Gold Resource: 14.5Moz
  • Gold Reserve: 0.7Moz
  • LoM: 6 years

Operating statistics FY24

Production

3 129kg / 100 599oz

Grade

6.73g/t

Workforce

3 490

All-in sustaining cost

US$1 667/oz

Operating performance FY24

During the second half of FY24 Tshepong South was affected by geological and mining-related challenges resulting in lower square metres and as a result ore milled for the year was 8% lower at 465 000 tonnes (FY23: 506 000 tonnes). The recovered grade at 6.73g/t for FY24 was marginally lower than the 6.78g/t recorded for FY23. The operation produced a total of 3 129kg (100 599oz) for FY24, 9% lower than the 3 431kg (110 310oz) produced for FY23.

Despite lower production, revenue increased 4% to R3 734 million (FY23: R3 607 million) due to a 16% increase in the average gold price received to R1 211 447/kg (FY23: R1 043 180/kg). Cash operating costs increased by 10% to R2 607 million (FY23: R2 374 million), mainly due to annual wage and electricity tariff increases as well as higher MPRDA royalties. Total royalties paid was R64 million (FY23: R26 million) on higher revenue and profits. Capital expenditure increased 3% to R527 million (FY23: R514 million), mainly for ongoing development.

The operation recorded operating free cash flow of R599 million for the year under review, 17% lower than the R719 million for FY23 mainly due to lower production and higher costs.

Our focus area in FY25

The management team’s main focus will be to deliver safe profitable production in line with FY25 planning.

ESG statistics

Lost-time injury frequency rate

5.57 per million hours worked (FY23: 5.24)

Water intensity (/tonne treated)

2.83Ml FY23: 3.29Ml

Energy intensity (/tonne treated)

0.54GWh (FY23: 0.55GWh)

GHG intensity
(/tonne treated)

0.54t CO2e (FY23: 0.57t CO2e)

Local economic development

R16m (FY23: R10m)

SLP

Tshepong/Phakisa 2018 – 2022 (English)
Tshepong/Phakisa 2018 – 2022 (SeSotho)

Tshepong North

Tel: 057 907 2113

Tshepong South

Tel: 057 916 7244

4PM6+MW Odendaalsrus,
Free State, South Africa