Harmony Gold announced yesterday that it had resumed its dividend following an increase in annual profit boosted by the performance of the Mponeng mine in Carltonville.
In its results for the year ended June 30, 2023, South Africa's largest gold mining company by volume declared a dividend of 75 cents out of income reserves. In the comparable period last year, the dividend declared was 22 cents.
“Due to the strong group performance and excellent operating free cash flows in the 2023 financial year, we are pleased to declare a full-year dividend of 75 SA cents,” the group said.
In March, the miner said no interim dividend was declared because of the allocation of capital towards near-term copper and growth projects.
The group reported that gold revenue increased by 14% to R47.6 billion compared to R41.7bn in 2022.
“This increase was due to higher underground recovered grades, which increased by 8% to 5.78g/t (grams per ton) in the reported period from 5.37g/t in the 2022 financial year. This was further supported by the higher average gold price received, which increased by 15% to R1 032 646/kg in the 2023 financial year from R894 218/kg in the previous reporting period.
“Group production in the 2023 financial year was steady, decreasing by 1% to 45 651kg from 46 236kg in the comparable period. However, adjusting for the closure of Bambanani at the end of last year financial year, group production increased by 2% or 848kg year-on-year.
“Production was mainly driven by an excellent operating performance from our South African underground operations and an 18% or 663kg increase in Hidden Valley production,” it said.
Harmony Gold CEO Peter Steenkamp said: “I think it's good results, given the kind of challenges and things that we all had to go through the most in the number of years. We are very pleased with the performance. We managed to deliver on all the different metrics being cost and great production volumes.”
The group reported headline earnings per share increased by 60% to 800 SA cents per share compared to 499 SA cents per share in last year's financial year.
Steenkamp said the 2024 production guidance for the group was from 1 380 000 to 1 480 000 ounces at an all-in sustaining costs (AISC) of less than R975 000/kg.
“Underground recovered grade for the 2024 financial year is guided at between 5.60g/t to 5.75g/t,” he said.
Steenkamp said Harmony Gold had good momentum and the results were sustainable.
“I think our grades will hold. There's nothing at this point that we see that can impact our results. We are already about two months into the new year. We feel comfortable and confident that we're going to have a good year going forward. We are busy with the feasibility of the new projects that will only come to the board at the mid-year cycle for approval, and we think all is going according to plan at this point.”
Looking ahead, Steenkamp said: “Our exciting and comprehensive growth pipeline includes two significant copper projects that will transform Harmony into a global gold-copper producer.
“Creating long-term value for all our shareholders and stakeholders is the cornerstone of how we operate. As we embark on the next phase of our growth journey, successfully executing our four strategic pillars of responsible stewardship, operational excellence, cash certainty, and effective capital allocation remains of utmost importance.”
BUSINESS REPORT