Record gold prices have flowed directly to the bottom line of Harmony Gold, which posted a record free cash flow and dividend for the first half of its financial year. Much of this was driven by Mponeng, the world's deepest mine, and Harmony announced board approval to proceed with an extension project that will keep it operational until at least 2044.

Gold's price hit a record late last year of around $2,300 an ounce and scaled record highs in rand terms. It's all been music to the ears of South African producers of the precious metal.

Harmony Gold on Wednesday unveiled cracking interim results. Group operating free cash flows soared by 265% to a record R7.1-billion ($381-million), while headline earnings rose by 226% to 956 SA cents per share.

Investors will receive a record interim dividend of 147 SA cents per share.

One key driver has been Harmony's Mponeng operation in western Gauteng, the world's deepest mine, which extracts ore at astonishing depths of almost 4km below the N12. Harmony acquired Mponeng from AngloGold Ashanti in October 2020 and has never had buyer's remorse.

Mponeng's recovered grades in the six months to the end of December 2023 increased by 30% compared to the same period the previous year, lifting production by 30%. In such a price environment, that is basically cash getting churned out.

And Harmony announced that its board had approved a mine extension project at Mponeng.

"This major project will add 3.05 million ounces of mineral reserves over the life of the mine, delivering average expected steady-state production of...