Harmony Gold reports 8% increase in gold production

Johannesburg – Harmony Gold Mining Company advises that net profit for H1FY21 will be between R5.7 billion and R5.9 billion – which is between 325% and 339% higher than H1FY20. In US dollar terms, net profit for H1FY21 is estimated to be between 283% and 297% higher at US$349 million to US$361 million in comparison to H1FY20.

The increase was partially offset by an increase in the taxation expense.

Revenue from the existing operations increased by R3.1 billion (US$191 million) primarily due to an 8% increase in gold production and the increase in the gold price.

The average gold price received increased by 31% to R896 587/kg in H1FY21 from R683 158/kg in H1FY20. In US dollar terms, the average gold price received increased by 19% to US$1 716/oz in H1FY21 from US$1 447/oz in H1FY20.

The increase in net profit and earnings is primarily due to:

  • an increase in production;
  • a higher average gold price received;
  • gains on derivatives and foreign exchange translation gain; and
  • a gain on bargain purchase recognised on the acquisition of Mponeng and related operations.

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