Harmony Gold to post major leap in interim share earnings on gold price gains


HARMONY Gold will report an increase in interim headline share earnings for its 2021 financial year of up to 219% owing to higher production and an increased gold price.

Commenting in a trading statement today ahead of its interim results announcement, scheduled for Tuesday (February 23), the company added it had also benefited from one-off effects including a significant net gain from its rand-hedging activities.

Net profit would come in at between R5.7bn and R5.9bn which would be between 325% and 339% higher year-on-year. In US dollar terms, the increase would be 283% and 297% coming out at between $349m and $361m compared to the first half of 2020.

In US dollar terms, headline share earnings would be 47 and 49 US cents or 175% and 189% higher than the previous comparable period which was 17 US cents per share.

The average gold price received increased by 31% to R896,587/kg in the first half from R683,158/kg in the first half of its 2020 financial year. In US dollar terms, the average gold price received increased by 19% to $1,716/oz from $1,447/oz last financial year.

Harmony concluded the purchase for $300m of the West Rand mine, Mponeng, and Mine Waste Solutions from AngloGold Ashanti. It said today that the acquired assets contributed R3bn ($192m) in revenue and R2bn ($128m) in production costs