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Harmony Gold expects higher half-year earnings on ‘excellent' recovered grades and higher gold price

Kitco News

(Kitco News) - Harmony Gold (NYSE: HMY), a senior global gold producer, announced today that a reasonable degree of certainty exists that basic earnings for H1FY23 will be 20% to 40% higher than for H1FY22.

The company said that higher expected basic earnings are primarily due to an increased gross profit as a result of higher underground recovered grades and an increase in the average gold price received which offset the increase in production costs.

Earnings per share are expected to be between 16 and 18 US cents per share, which is an increase of between 0% and 13% on earnings of 16 US cents per share reported for the previous comparable period.

Headline earnings per share are expected to be between 17 and 18 US cents per share, which is an increase of between 2% and 8% respectively on the headline earnings of 17 US cents per share reported for the previous comparable period.

Previously, the company reported that its total gold production for the six-month period ended 31 December 2022 of financial year 2023 was between 720,000 ounces and 745,000 ounces. During six-month period ended 31 December 2021 (comparable period), the company produced 718,726 ounces of gold.

Harmony Gold noted that its production guidance for the financial year 2023 remains unchanged at 1,400,000 to 1,500,000 ounces of gold and gold equivalents.

“Our strategy of allocating growth capital towards high-margin, long-life assets has started to deliver the desired results. Excellent recovered underground grades along with the strong rand-per-kilogram gold price have provided Harmony with good tailwinds. Execution excellence and sustainable mining practices will ensure that we achieve our annual production and cost guidance for the 2023 financial year,” said Peter Steenkamp, chief executive officer of Harmony.

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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