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Harmony Gold boosts net profit 336%, declares dividend

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(Kitco News) - Harmony Gold Mining today reported "…an exceptional performance” for the period ended 31 December 2020 in comparison to the six months ended 31 December 2019.

The company said it saw an 8% increase in gold production, 69% increase in operating free cash flow margin, 336% increase in net profit and 58% reduction in net debt.

Harmony Gold declared an interim dividend of 110 SA cents (~US 8 cents).

The company noted that higher gold production was due to the integration of the Mponeng and Mine Waste Solutions assets, the effective measures adopted in preventing and mitigating the impact of COVID-19 and disciplined mining.

"The exceptional performance achieved during H1FY21 substantiates the growth strategy that we set out to pursue at the beginning of 2016. Through astute acquisitions, we have successfully added quality ounces and de-risked our asset portfolio. Harmony is no longer a marginal gold producer, but an emerging market mining specialist”, said CEO Peter Steenkamp.

Harmony Gold has operations and assets in South Africa and Papua New Guinea (PNG). The company’s assets include one open pit mine and several exploration tenements in PNG, as well as 10 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, Harmony owns 50% of the significant Wafi-Golpu copper-gold project – a tier 1 asset in a joint venture in PNG.

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