Harmony Gold Mining anticipates a rise in fiscal-year first-half earnings due to higher recovered grades, increased gold output, and surging prices for the yellow metal.
Strong Performance Expected
The South African gold miner projects earnings per share to be between 50 and 52 U.S. cents for the first half-year ended Dec. 31, more than doubling the 17 cents reported in the same period a year prior. Chief Executive Peter Steenkamp expressed optimism, stating, “This has placed us in a very good position to take advantage of the strong gold price and generate excellent operating free cash flows.”
Additional Factors Contributing to Growth
In addition to higher gold output and prices, Harmony Gold Mining also saw an increase in silver and uranium production along with rising average prices for both commodities.
Challenges Faced
While the company reported strong results, it did face challenges from a rise in production costs attributed to inflationary increases in labor and electricity.
Upcoming Financial Results
Harmony Gold Mining is set to release its financial results for the period on Wednesday, February 28.