Harmony strikes gold with record earnings

Harmony Gold reported impressive results for the 2024 financial year, as record-high bullion prices boosted the miner’s earnings.

Harmony Gold released its results for the year through June 2024, which revealed strong results for the gold miner.

Its revenue rose by 24.56%, and net profit grew by 77.92% from R4.88 billion in 2023 to R8.69 billion in 2024.

The company said this increase was a result of the higher recovered grades and a 16% increase in average gold price received to R1,201,653/kg from R1,032,646/kg in the 2023 financial year.

Specifically, gold revenue increased by 23% to R58.27 billion from R47.52 billion. 

Harmony Gold’s operating free cash flows also increased by 111% to R12.74 billion from R6.03 billion. This is the highest operating free cash flow ever generated at Harmony. 

Its operating free cash flow margins increased to 22% from 13% in the previous financial year. 

“We believe these improved margins are sustainable as a result of higher recovered grades and the increase in contribution from our high-margin surface source operations,” the company said.

“We remain in a meaningful net cash position with excellent liquidity as we build a war chest to fund our comprehensive project pipeline aimed at transforming Harmony into a global gold-copper company.” 

Harmony’s basic earnings per share increased by 78% to 1,386 cents per share compared to 780 cents in 2023.

Headline earnings per share increased by 132% to 1,852 cents per share compared to 800 cents per share in FY23.

These excellent results saw Harmony announce a final dividend of 94 cents per share for this reporting period, bringing the total cash returned to shareholders for the financial year to R1.39 million.

“In the past financial year, Harmony delivered an exceptional combined performance across our operations,” said CEO Peter Steenkamp.

“This achievement was a result of clear strategic intent and successful execution, enabling us to deliver above plan and capitalise on higher gold prices.” 

“This resulted in a record year for the Company. We aim to excel at what we do and I believe we achieved this goal.”

He explained that while the gold price received continues to provide sustained tailwinds, the true driver of value has been Harmony’s investment in quality ounces. 

“As we transform into a global gold-copper producer, the foundations are in place which will enable us to continue on this growth trajectory through the extraction of safe, profitable ounces and value accretive acquisitions,” he said.