Harmony Gold delivers strong half-year earnings

Gold mining company Harmony Gold has recently reported impressive interim results for the period ending 31 December 2016. The company's chief executive, Peter Steenkamp, joined CNBC Africa to discuss the financial success and the strategies that contributed to this positive outcome. Harmony Gold has made significant progress in overcoming the challenges faced by the mining industry in recent years. The company has seen an 8% increase in production, attributed to strong management and volume improvements across all operations. This has led to Harmony Gold meeting or exceeding its production targets, resulting in a profitable period for the company. One of the key highlights of the recent results is the announcement of an interim dividend, a move that showcases Harmony Gold's financial stability and commitment to rewarding shareholders. Peter Steenkamp emphasized the importance of returning value to investors, especially given the company's strong financial position and cash reserves. While the decision to pay out the dividend will ultimately lie with the board, Harmony Gold aims to maintain its status as a dividend-paying company as it continues to grow and expand its operations. In terms of growth aspirations, Harmony Gold is considering opportunities in Papua New Guinea and South Africa, with a focus on exploring assets beyond gold mining. While the company remains committed to its core business of gold production, it is open to diversification if compelling opportunities arise. This strategic approach aligns with Harmony Gold's long-term vision and commitment to sustainable growth. Despite the positive financial results, Peter Steenkamp acknowledged the challenges posed by fluctuating gold prices and global economic uncertainties. Harmony Gold has implemented effective hedging strategies to mitigate risks and ensure financial stability in the face of volatility. The company remains vigilant in monitoring market dynamics and adapting its production processes to navigate the ever-changing landscape of the mining industry. Regarding labor relations, Harmony Gold has faced recent disruptions at its operations, including strikes at certain mines. Peter Steenkamp expressed disappointment over these incidents and highlighted the company's commitment to addressing labor issues through constructive dialogue and investigations. While stability remains a priority, Harmony Gold is actively engaged in resolving any labor disputes to ensure a harmonious working environment for all employees. In conclusion, Harmony Gold's strong half-year earnings reflect its resilience and strategic foresight in managing operational challenges and market fluctuations. The company's unwavering commitment to sustainable growth, shareholder value, and responsible mining practices positions it well for continued success in the mining sector.