Harmony Gold Mining Company (HAR) H2 2024 earnings summary

Executive summary

• Achieved record financial and operational results for FY 2024, driven by high gold prices, improved grades, and operational excellence, with strong safety and ESG performance.

• Gold production rose 6% to 1.56Moz, exceeding revised guidance, and underground recovered grade improved 6% to 6.11g/t.

• Net profit increased 78% to ZAR 8.7 billion, headline earnings per share up 132% to ZAR 18.52 (1,852 SA cents), and operating free cash flow more than doubled.

• Maintained robust balance sheet, ending FY24 in a net cash position with significant liquidity headroom.

• Final dividend of ZAR 0.94/share (94 SA cents), with total cash returned to shareholders close to ZAR 1.4 billion.

Financial highlights

• Group revenue increased by 25% year-over-year to ZAR 61.4 billion (US$3.3 billion), driven by higher production and gold prices.

• EBITDA up 54% to nearly ZAR 19 billion (US$1.04 billion), and net profit rose 78% to ZAR 8.7 billion (US$459 million).

• Headline earnings per share increased by 132% to ZAR 18.52 (1,852 SA cents), adjusted for a ZAR 2.8 billion impairment at Target North.

• Operating free cash flow more than doubled to ZAR 13 billion (US$681 million), with a margin of 22%.

• All-in sustaining costs decreased by 4% to $1,500/oz; cash operating costs down 2% to $1,262/oz.

Outlook and guidance

• FY 2025 production guidance of 1.4–1.5 million ounces, with underground grades above 5.8 g/t.

• All-in sustaining costs expected between ZAR 1.02–1.1 million/kg, reflecting higher capital spend and inflation.

• Capital expenditure to rise to ZAR 10.8 billion (just under $600 million), mainly for growth projects and sustaining development.

• Major capital projects and feasibility studies to support long-term ounce replacement and growth.

• Confident in beating conservative guidance, with strong operational momentum across assets.