Harmony Gold expects to report an increase in earnings for the six months to end-December, driven by a higher gold price and improved operational performance.
In a guidance statement released on Thursday, the company said the expected increase was primarily driven by a substantial rise in revenue, “resulting from safe, predictable, and consistent production levels”, coupled with a higher average gold price received during the period.
The average gold price increased by 23% to R1,405,020/kg in the first half of the 2025 financial year from R1,141,424/kg in the same period of the previous comparable period. In dollar terms, the average gold price rose 28% to $2,437/oz in the company’s 2025 first half from $1,900/oz in the previous period. This increase in revenue has been a key factor in boosting the company’s financial performance.
Headline earnings per share (HEPS) are expected at 1,188c-1,361c, representing an increase of 24%-42%.
Despite the favourable market conditions, Harmony faced challenges that partially offset the earnings growth. These included above-inflation increases in labour and electricity costs, higher taxation due to increased taxable income and royalty taxes driven by higher revenue and profitability.
“The company's improved performance is attributed to its focus on safety, operational excellence and higher quality ounces,” said CEO Beyers Nel in a statement. “The company’s disciplined approach to capital allocation has enabled it to leverage the current high gold price environment and generate exceptionally robust operating free cash flows.”
Despite making efforts towards safety measures, Harmony Gold announced the death of a second miner at its Mponeng mine on Wednesday after a fall-of-ground incident triggered by an earth tremor on February 20.
The incident claimed the life of one miner at the scene, while another was severely injured. Despite receiving medical care the miner succumbed to his injuries, Harmony Gold said.
The company will publish its interim results on March 4.
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