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Harmony Gold expects up to 339% net profit growth

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(Kitco News) - Harmony Gold Mining reported today that the company expects its net profit for the six months period ended December 31, 2020 (H1FY21) will be between R5.7 billion and R5.9 billion, which is between 325% and 339% higher than H1FY20.

In US dollar terms, net profit for H1FY21 is estimated to be between 283% and 297% higher at US$349 million to US$361 million in comparison to H1FY20.

Earnings per share (“EPS”) is expected to be between 942 and 976 South African cents per share or 278% and 292% higher than the previous comparable period (which was 249 South African cents). In US dollar terms, EPS is expected to be between 58 and 60 US cents per share or between 240% and 254% higher than the previous comparable period (which was 17 US cents).

The company said that the increase in net profit and earnings is primarily due to an increase in production, a higher average gold price received, gains on derivatives and foreign exchange translation gain, and a gain on bargain purchase recognised on the acquisition of Mponeng and related operations.

Harmony, a gold mining and exploration company, conducts its activities in South Africa and in Papua New Guinea, one of the world’s premier new gold-copper regions. With 69 years of experience, Harmony is currently South Africa’s largest gold producer.

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