Harmony Gold announces 35% earnings increase in full year results

Harmony Gold reported a bumper 35% growth in earnings, built on solid production and growing grade profile, for the year ended 30 June 2017.

Headline earnings, the main measure for profit in South Africa, increased 35% to 298 South African cents and the company benefitted from its hedging strategy bringing in US$128 million.

The South African miner met its production guidance for the second consecutive year with underground grade also increasing to 5.07g/t of gold.

“Production is safer and more predictable, grade management is disciplined, production delivery exceeds guidance, operations are generating operational free cash flow and the hedging strategy secures cash margins,” said Harmony CEO Peter Steenkamp.

“Combined with Harmony’s low net debt compared to peers and its excellent growth opportunities, Harmony continues to have a strong investment case. Our priorities are to grow our ounces and pay dividends from profits.”

Harmony is now focused on ‘unlocking the value’ of its Golpu project and identifying other acquisitions as it targets 1.5moz production in FY2019.