Harmony expects interim earnings to rise between 20% and 40%

23rd February 2023

By: Donna Slater

Creamer Media Chief Photographer and Senior Contributing Editor


Font size: - +

Ahead of the March 1 release of its results for the six months to December 31, 2022, gold miner Harmony Gold reports that its basic earnings will be between 20% to 40% higher year-on-year.

Earnings a share are expected to be between R2.73 and R3.18.

Headline earnings a share are expected to be between R2.72 and R3.22 – an increase of between 10% and 30% year-on-year.

CEO Peter Steenkamp says Harmony’s strategy of allocating growth capital towards high-margin, long-life assets has started to deliver the desired results.

The increase in earnings was mainly the result of an increase in 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.

With a loss of R298-million in the first half of its 2022 financial year, a foreign exchange translation gain of about R30-million ($2-million) is predominantly attributable to the smaller foreign exchange losses on the foreign-denominated borrowings.

This is a result of the rand weakening against the dollar by a smaller margin during the period under review. These losses were further offset by the gains realised on the commodities' receivables and cash, as well as a derivative gain of R313-million ($18-million) compared to losses of R35-million ($2-million) in the first half of its 2022 financial year.

The derivative gains are a result of the favourable exchange rates compared to locked-in prices as well as additional exchange contracts being entered into at favourable prices.

“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,” Steenkamp says.

However, the increase in earnings was partially offset by production costs, which were 2% to 10% higher, mainly owing to inflationary increases in consumables.

Despite these increases, the all-in sustaining costs (AISC) were below the yearly guided AISC of R900 000/kg.

Harmony was also impacted by an increase in the taxation expense as well as deferred taxation. The taxation expense increased as a result of the foreign exchange gains and derivative gains impacting current tax as well as the use of the assessed losses and unredeemed capital expenditure increasing the deferred tax expense.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones, wear-resistant linings,...

Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.


Latest Multimedia

sponsored by

Magazine cover image
Magazine round up | 26 May 2023
26th May 2023

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.059 0.089s - 107pq - 2rq
Subscribe Now