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Harmony rides high on soaring gold prices
![Mponeng was a strong performer for Harmony](https://biz-file.com/c/2408/748897-700x364.jpg?5)
“We delivered an exceptional combined performance across all our operations in FY24,” said CEO Peter Steenkamp.
“This achievement was a result of clear strategic intent and successful execution, enabling us to deliver ahead of plan and capitalise on higher gold prices.”
The company exceeded its upward revised production guidance of 1.5Moz (48,210kg), with all-in-sustaining costs comfortably below R920,000/kg.
The underground recovered grades were also higher than the guided 6g/t for FY24.
Group production for this reporting period increased by 6% to 48,578kg (1,561,815oz) from 45,651kg (1,467,715oz) in FY23.
This increase was mainly due to higher recovered grades at Mponeng, Hidden Valley, and Mine Waste Solutions.
High grade bet paid off
The company’s strategy of allocating most of its project capital to higher-grade, higher-quality, and lower-risk assets has paid off, resulting in improved margins through operational excellence and value-accretive acquisitions.
“By growing our higher-grade gold mines, expanding our surface retreatment business, and our international gold and copper assets, we will continue to transform and de-risk Harmony as we go from strength to strength,” added Steenkamp.
Shareholders are advised that basic earnings for FY24 will be higher than for the financial year ended 30 June 2023 (FY23) primarily due to an increased gross profit because of higher recovered grades, an increase in gold production, and a higher average gold price received.
Inflation pressures
However, the increase in earnings was partially offset by the impairment of the Target North asset, an increase in production costs mainly due to inflationary pressures on costs including labour, contractors and electricity, and an increase in the taxation expense predominantly due to current taxation.
Consequently, earnings per share (EPS) are expected to be at least 1,385c/share, which is an increase of at least 78% on the EPS of 780c/share for the previous period.
Headline earnings per share (HEPS) are expected to be at least 1,852c, an increase of more than 100% from FY24.
The company will provide an update regarding the range for the EPS and HEPS as soon as reasonable certainty has been established.
Results delay
The publication of financial results has been delayed until 5 September 2024 due to the transition of external auditors from PwC to EY.
EY is currently assessing the approach followed by management in determining the ounces used in the calculation of the valuation of Target North, an undeveloped property, dating back to 2004.
Despite this delay, Harmony remains confident in the accuracy of its Mineral Resources and Mineral Reserve Statements.
![Lindsey Schutters](https://biz-file.com/b/2103/2202840-140x210.jpg)
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