Harmony Gold Mining Company (HAR) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 results, driven by high gold prices, operational excellence, and strategic acquisitions, with a strong focus on safety, ESG, and sustainable growth.

• 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, 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 per share declared, reflecting confidence in growth and shareholder returns.

Financial highlights

• Group revenue rose 25% year-over-year to ZAR 61.4 billion ($3.3 billion), with net profit up 78% to ZAR 8.7 billion.

• Headline earnings per share increased 132% to ZAR 18.52 ($0.99), and EBITDA grew 54% to nearly ZAR 19 billion.

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

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

• Net cash position of ZAR 2.9 billion ($159 million) as of June 30, 2024.

Outlook and guidance

• FY 2025 production guidance: 1.4–1.5 million ounces, with underground grades above 5.8g/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 high-grade underground projects and growth initiatives.

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

• Confident in beating conservative guidance, with strong operational momentum and project execution.