Harmony Gold HY revenue rises 35%

Johannesburg-based gold miner Harmony Gold recently announced a record interim payout of 147 cents per share after an impressive surge of 226% in headline earnings per share over the last six months. The company's Group Chief Operating Officer, Beyers Nel, joined CNBC Africa to discuss the factors contributing to this success and the outlook for the future. With a focus on operational momentum, Nel highlighted the exceptional grades from high-grade underground mines as a significant driver of their positive results. The performance at the Mpuneng and Moab mines was particularly strong, with expectations for continued success in the near term. However, a slight decrease is anticipated at the Hidden Valley mine in Papua New Guinea due to the exhaustion of a high-grade area in the ore body. Despite this, Harmony Gold remains optimistic about maintaining the momentum moving forward. In terms of costs, Nel emphasized the company's ability to manage expenses effectively, citing favorable production and better grades as key factors. While facing challenges such as power bill increases and rising royalties, Harmony Gold continues to prioritize cost discipline to support profitability and dividend payments. The company also reported record operating free cash flow, up 265%, leading to discussions about their plans for the surplus cash. Nel mentioned an organic project, the Penang Extension, requiring around R8 billion in capital investment, with a focus on balancing project commitments, capital expenditure, and shareholder rewards. Looking ahead, Harmony Gold outlined a capital profile of approximately R9.5 billion for the next year, including the Penang Extension project, with a strategic approach to enhance portfolio transformation and uphold careful capital discipline. When asked about the outlook on gold prices, Nel acknowledged the presence of structural tailwinds but emphasized the company's focus on safety, predictability in mining operations, and cost discipline as primary concerns. Regarding the business operating environment in South Africa, Nel expressed the company's commitment to the country and its resilience in overcoming challenges such as load shedding. While acknowledging the existing hurdles, Harmony Gold remains dedicated to working collaboratively with stakeholders to navigate the operating landscape. Overall, Harmony Gold's impressive interim results and strategic outlook underscore its commitment to sustainable growth and value creation for shareholders and stakeholders.