Harmony Gold posts record 87% surge in earnings

Harmony Gold Mining Company , South Africa’s biggest gold producer, posted an 87% increase in headline earnings a share in the year ended June, marking a record financial performance.

Driven by the surge in the gold price, reported headline earnings were R43.63 a share, up from R23.37 a share.

Harmony, the diversified gold and copper producer, also rewarded its shareholders with bumper dividends. The company declared a R7.50 a share final dividend, or R4.7bn, bringing the total dividend payout to a record R8.1bn or R12.80 a share.

This represents 49% of net cash after all capital commitments, it said. The group’s revenue was 34% higher at R99.23bn, from R73.89bn a year earlier.

CEO Beyers Nel said the financial year ended June 30 was a “defining” year in Harmony’s evolution from a gold producer to a diversified gold and copper company.

“Through disciplined execution, consistent operational delivery and strategic investment, we strengthened our position as a resilient, cash-generative business while creating a clear pathway for future growth,” he said.

In terms of production, output was 1.42-million ounces, in line with guidance, while costs were also within expectations.

“The group delivered strong growth in earnings per share, generated robust adjusted free cash flow and declared a record final dividend to shareholders. These results reflect the quality of our operations, the discipline of our capital allocation framework and the dedication of our employees and business partners across the group,” said Nel.