Harmony to delay year-end numbers to Sept. owing to Covid-19 precautions

Peter Steenkamp, CEO, Harmony Gold

HARMONY Gold has delayed the publication of its year-end operating and financial numbers to mid-September owing to Covid-19 restrictions, the company said today.

Commenting in a trading update – in which it said gold production would be 15% lower year-on-year at some 1.2 million ounces – the firm said it was “… prudent that it postpones its results … to ensure the FY20 numbers are accurate, reliable and reviewed by our auditors” whilst meeting the JSE’s reporting timeline.

Harmony was due to report its numbers on August 18.

Gold production in the final quarter of the year recovered to 75% of capacity following the earlier national lockdown owing to Covid-19 in which a portion of its 5,500 migrant workers returned to their homes.

Whilst fourth quarter production was higher than expected, full production would not resume until August owing to delays in migrant worker returns, it said.

All-in sustaining costs (AISC) would increase by between 17% to 19% as a result of the lower production, additionally affected by lower grade from its South African operations as well as at Hidden Valley, in Papua New Guinea.

However, a 25% increase in the realised gold price – as a result of a decline in the value of the rand against the dollar during the period – and the 14% increase in the dollar gold price – would see an increase in the operating free cash flow margin of between 13% and 15%.

Headline earnings would be influenced by currency and production hedging, however. The company didn’t provide details but said hedged positions (over about a fifth of Harmony’s gold production) “… may have an impact”.