Harmony Gold Mining Company, a leading South African mining and exploration firm, expects a substantial increase in its earnings for the six months ending December 31, 2024, with earnings per share (EPS) and headline earnings per share (HEPS) projected to rise by as much as 42% in rand terms. This increase is largely attributed to a higher gold price and the company’s ability to maintain safe, predictable, and consistent production.
In a trading statement issued on February 27, Harmony highlighted that the average gold price received for the review period was 23% higher year-on-year in rand terms, reaching R1.41 million per kilogram. In dollar terms, the average gold price rose by 28% year-on-year to $2,437 per ounce. The company also reported gold production between 790,000 ounces and 805,000 ounces for the first half of its 2025 financial year.
Key Drivers of Strong Earnings
The combination of increased gold prices and steady production has significantly boosted Harmony’s revenue and earnings for the period. However, this was partially offset by higher production costs, driven by planned above-inflation increases in labor and electricity costs. Additionally, a rise in taxable income led to higher taxes and royalties, due to the increased revenue and profitability from favorable gold prices.
Despite these cost pressures, Harmony anticipates a 24% to 42% increase in EPS, with an expected range of R11.82 to R13.55, compared to R9.56 EPS reported for the same period in 2023. In dollar terms, EPS is expected to increase by 29% to 48%, reaching a range of $0.66 to $0.76, up from $0.51 in the prior year.
For HEPS, the expected increase is also between 24% and 42%, with a range of R11.88 to R13.61, compared to the 2023 HEPS of R9.56. In dollar terms, HEPS is forecast to rise between 31% and 50%, with an expected range of $0.67 to $0.77, compared to $0.51 for the previous year.
Focus on Operational Excellence and Long-term Sustainability
CEO Beyers Nel attributed the company’s strong results to its continuous investment in safety, operational excellence, and the production of higher-quality gold ounces. He emphasized that Harmony’s stable, rand-based cost structure and consistent operational performance have been key to its success. Nel also highlighted Harmony’s disciplined approach to capital allocation, which has enabled the company to capitalize on the high gold price environment and generate robust operating free cash flows.
“Our mining with purpose ensures that we are advancing Harmony in a sustainable and responsible manner, leveraging our wealth of experience and specialized skills to create long-term value for all stakeholders,” said Nel.
Harmony Gold Mining, which operates both in South Africa and Papua New Guinea, will release its full interim results on March 4.
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