Harmony Gold expects over 100% increase in FY23 basic earnings
Harmony Gold, a senior global gold producer, announced today that it met its production and cost guidance and beat its guidance on underground recovered grades in FY23 (a financial year ending June 30, 2023).
The company said gold production for the group achieved the upper end of FY23 guidance of between 1,400,000 and 1,500,000 ounces whilst all-in-sustaining costs (AISC) remained “comfortably” below R900,000/kg (~US$1,500/oz), as guided, for this financial year.
Harmony noted that it continues to deliver “excellent” underground-recovered grades from its South African operations, underpinned by a “phenomenal” performance from Mponeng.
“As a result, underground recovered grades were higher than the guided 5.6g/t for FY23. As anticipated, recovered grades at Hidden Valley also improved in the fourth quarter,” it added.
Importantly, the company announced that its basic earnings per share (EPS) are expected to be between 43 and 45 US cents in FY23, which is an increase of more than 100% on the loss per share of 8 US cents reported for the previous comparable period.
Headline earnings per share (HEPS) are expected to be between 43 and 50 US cents, which is an increase of between 30% and 50% on the headline earnings per share of 33 US cents reported for the previous comparable period.
The company said that the expected increase in basic earnings is primarily due to an increase in revenue due to higher underground recovered grades and a higher average gold price received, as well as no impairment recognised on assets during FY23 compared to US$273 million impairment in FY22.
Harmony Gold has operations and assets in South Africa and Papua New Guinea (PNG). The company’s assets include one open pit mine and several exploration tenements in PNG, as well as 10 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, Harmony owns 50% of the significant Wafi-Golpu copper-gold project – a tier 1 asset in a joint venture in PNG.
