Harmony exceeds full-year output guidance

Harmony Gold, a leading gold mining company, has revealed its full-year results, showcasing a remarkable performance that surpassed expectations. The company reported a production of 1.1 million ounces of gold, exceeding the initial guidance of 1.05 million ounces. This impressive outcome was accompanied by a 35% increase in headline earnings per share, highlighting the company's commitment to delivering safe, profitable ounces and improving margins. In an exclusive interview with CNBC Africa, Harmony Gold CEO, Peter Steenkamp, discussed the various factors that contributed to the company's success. Steenkamp attributed the strong performance to strategic measures, including an effective hedging strategy and enhanced productivity levels. He emphasized the importance of seizing opportunities in the market and maintaining a focus on safety and efficiency. Steenkamp expressed confidence in the company's ability to sustain its performance going forward, citing improvements in production efficiency and safety measures. He highlighted the company's progress in maintaining high safety standards, noting a significant achievement of recording a fatality-free quarter. However, Steenkamp acknowledged some operational challenges at certain mines, such as Bambanani and Unisel, where production levels were weaker. He outlined turnaround strategies for these operations, including mining higher-grade areas and implementing new mining philosophies to enhance performance. Addressing speculation about potential acquisitions, Steenkamp clarified that while Harmony Gold had engaged in discussions with various parties, no agreements had been finalized. He emphasized the company's cautious approach to acquisitions, ensuring that any assets acquired are affordable and strategically beneficial. When questioned about the operating environment in South Africa, Steenkamp remained optimistic, highlighting Harmony Gold's longstanding presence in the country and its ability to navigate challenges. He emphasized the importance of policy certainty and creating an environment conducive to mining investment. On the topic of hedging strategies, Steenkamp indicated that the company would continue to evaluate opportunities to mitigate risks related to gold price fluctuations. He reiterated Harmony Gold's commitment to responsible hedging practices and maintaining a prudent approach to financial management. Steenkamp also addressed the provision set aside for miners affected by lung disease, commending the collaborative efforts of industry stakeholders in addressing this issue. He expressed confidence in the accuracy of the provision and the thoroughness of the groundwork conducted. Regarding dividends, Steenkamp acknowledged the significance of the company's dividend payments and indicated a willingness to consider shareholder returns in line with financial performance. He emphasized the need to assess dividend payments regularly based on market conditions. In conclusion, Harmony Gold's strong performance in exceeding its full-year output guidance and delivering robust earnings underscores the company's resilience and strategic foresight. With a focus on safety, efficiency, and prudent financial management, Harmony Gold remains a key player in the gold mining industry with a promising outlook for the future.