Harmony more than doubles FY24 HEPS on higher gold prices, output

Harmony Gold, a leading gold mining company, has reported impressive financial results for the fiscal year 2024, with a significant increase in earnings per share and robust operational performance. The company's CEO, Peter Steenkamp, attributes this success to a combination of higher gold prices, efficient production strategies, and strong relationships with employees and unions. Steenkamp highlighted the positive impact of the improved gold prices throughout the year, which contributed to Harmony Gold's record earnings. The company also saw a 6% increase in gold volumes driven by higher grades, alongside effective cost management initiatives. Additionally, long-term agreements with unions provided cost predictability and stability, leading to overall operational success. One of the key contributors to Harmony Gold's exceptional results was the performance of its Mpuneng and Hidden Valley mines. The acquisition of Mpuneng mine from Angleweld Ashanti proved to be fruitful, while the high-grade portion of the ore body at Hidden Valley mine significantly boosted production. These operational achievements, coupled with favorable market conditions, propelled Harmony Gold to achieve a 100% increase in headline earnings for FY24. Steenkamp also discussed the company's future expansion plans, including venturing into copper production with the upcoming Evocopper project in Queensland, Australia. Harmony Gold aims to invest in renewable energy projects to support its mining operations, with a 100-megawatt plant slated for completion by 2026. In terms of shareholder value, Harmony Gold declared a dividend of 94 cents per share, up from 75 cents per share in the previous period. By adhering to its dividend policy of paying out 20% of net free cash flow, the company aims to balance rewarding shareholders with funding its growth initiatives, such as the Moakotsong project, Mpuning extension, and the Eva Copper development. Looking ahead to FY25, Steenkamp outlined the company's production targets and cost management strategies. While anticipating inflationary pressures, Harmony Gold aims to maintain its operational efficiency and cost discipline to sustain its financial performance. The CEO expressed confidence in the company's ability to navigate future challenges and deliver continued value to its shareholders. Overall, Harmony Gold's strong financial results and strategic initiatives position the company for further growth and success in the competitive gold mining industry. With a focus on operational excellence, cost efficiency, and sustainable practices, Harmony Gold is poised to capitalize on market opportunities and drive long-term value for its stakeholders.