Gold miner Harmony Gold expects its basic earnings for the full year ended June 30 to be higher than the previous year.

Earnings per share (EPS) are expected to be between 763c and 798c, in South African rands, which is an increase of more than 100% on the loss a share of 172c reported for the previous comparable period.

In dollar terms, the EPS is expected to be between $0.43 and $0.45, which is an increase of more than 100% on the loss a share of $0.08 reported for the previous comparable period.

Headline earnings per share (HEPS) are expected to be between 747c and 850c in rand terms, which represents an increase of between 50% and 70% from the HEPS of 499c reported in the previous comparable period.

In dollar terms, the HEPS are expected to be between $0.43 and $0.50, which is an increase of between 30% and 50% on the HEPS of $0.33 reported for the previous comparable period.

The increases are primarily the result of an increase in revenue owing to higher underground recovered grades and a higher average gold price received; and no impairment recognised on assets during the period owing to headroom shown on all assets compared to R4 433-million ($273-million) impairment in the previous year.

The increase in earnings was partially offset by an increase in production costs mainly as a result of higher consumables, contractors and services costs; acquisition-related costs relating to the Eva Copper assets acquired during December 2022 and subsequent exploration expenditure related to the feasibility study; a foreign exchange translation loss; and an increase in the taxation expense predominately owing to deferred taxation.

Harmony will publish its financial results for the period on August 30.

“Full-year 2023 was a year filled with many highlights as Harmony delivered on its strategic objectives of producing safe, profitable ounces,” CEO Peter Steenkamp says.

The company met the upper end of its production guidance of 1.4-milllion to 1.5-million ounces at an all-in-sustaining cost of below R900 000/kg.

Underground recovered grades also exceeded the upper end of the guided 5.45 g/t to 5.6 g/t.

“Our embedded approach to safety, operational excellence, alongside our improved asset quality, resulted in a strong and sustainable group performance with solid free cash flows. We will continue allocating growth capital to our high-grade underground and high-margin surface source operations in South Africa and expanding our international copper/gold portfolio,” Steenkamp outlines.