Harmony Gold: Cost of Mponeng operations already paid off

Harmony Gold Mining Company says the acquisition of Mponeng operations and related assets contributed R7.9 billion (US$513 million) in revenue and R1.8 billion (US$116 million) to net profit. Further, the fair value of the assets and liabilities acquired exceeds the consideration paid, resulting in a gain on bargain purchase of R1.2 billion (US$69 million).

In a trading statement and operating update for the year ended 30 June 2021, Harmony Gold Mining Company says the increase in the gold price received from R735 569/kg in FY20 to R851 045/kg in FY21 as well as an increase in the quantity of gold sold by 23% to 47 353kg contributed to the revenue increase from R29.2 billion for FY20 compared to R41.7 billion in FY21.

In US dollar terms the increase in the average gold price received from US$1 461/oz in FY20 to US$1 719/oz in FY21 contributed to the increase in revenue from US$1.9 billion for FY20 compared to $2.7 billion in FY21.