Harmony Gold, a leading gold producer with operations in South Africa and Papua New Guinea, experienced a nearly 6% increase in its share price after announcing that its underground grade recoveries exceeded expectations and it achieved the upper end of its production guidance for the year ending in June.
- The company expects headline earnings per share to rise by 50% to 70% for the same period, benefiting from higher gold prices.
- CEO Peter Steenkamp highlighted the successful delivery of strategic objectives, emphasizing the production of safe and profitable gold ounces throughout the year.
- Harmony Gold met its production guidance range of 1.4 to 1.5 million ounces, with an all-in-sustaining cost below R900,000/kg.
- Valued at approximately R42 billion on the JSE, Harmony is the largest gold producer in South Africa and operates gold tailings retreatment facilities. It also owns and operates the Hidden Valley mine in Papua New Guinea and holds a 50% stake in the Wafi-Golpu copper-gold project.
- In the 2022 fiscal year, the company generated over R3 billion in headline earnings.
- Steenkamp emphasized the allocation of growth capital to high-grade underground and high-margin surface source operations in South Africa, as well as the expansion of the international copper-gold portfolio.
Harmony Gold’s strong performance, surpassing expectations and benefiting from favorable gold prices, has resulted in a significant boost to its share price. The company’s focus on safe and profitable production, alongside strategic growth initiatives, positions it for continued success in the gold mining industry.