HARMONY Gold expects that its earnings for the year to end-June will be between 57% and 77% higher at between R21,80 and R24,5 a share compared with the R13,86 a share reported for the year to end-June 2024.
In a trading statement released today Harmony stressed it had achieved a “robust” performance from its high-grade underground South African operations – in particular Mponeng – as well as the Hidden Valley mine in Papua New Guinea.
Harmony said these latest results mark the tenth consecutive year in which the group has met guidance .
Gold production achieved of 1.48Moz was at the upper end of management’s guided range and was driven in part by a 3% rise in recovered underground grades to 6.27g/t which beat the previously upwardly revised guidance of 6g/t.
The average gold price received rose 27% to R1,53m/kg ($2,620/oz).
Management also kept a tight control on costs with all-in sustaining costs (AISC) maintained at R1,05m/kg ($1,806/oz) which was “comfortably” within the guided range of R1,02m to R1.1m .
Despite this good operational and cost performance Harmony still cited inflationary increases from labour; contractors, consumables and electricity as one of the reasons offsetting the rise in Harmony’s earnings.
Other factors included a higher royalty expense because of a higher rate being applied to the higher profits and a R3.5bn increase in taxation.
About R1.75bn of the tax bill related to current taxation because of higher profitability while the remainder was linked to deferred tax.
