South Africa’s largest gold mining operator, Harmony Gold Mining Company, has reported a 33% increase in net profit to R7.9bn in the six months ended 31 December 2024 (H1 FY25).
The company’s balance sheet has strengthened, with a net cash position of R7.3bn.
This financial growth is underpinned by a 19% rise in group gold revenue, which soared to R35.4bn from R29.7bn in the previous period.
Total operating free cash flow increased by 46% to R10.4bn in H1 FY25.
Earnings per share (EPS) also saw a 32% increase, reaching 1,265 SA cents per share ($0.71), up from a comparative EPS of 956 SA cents per share.
Shareholders have benefitted from a record interim dividend of 227 SA cents per share, and R1.4bn has been returned to them in H1 FY 2025.
The company reported a 4% decrease in total gold production, aligning with the company’s plans. Furthermore, a 2% increase in underground recovered grades to 6.40 grams per tonne was reported.
Harmony Gold is also exploring copper optionality, with CEO Beyers Nel expressing eagerness to bring value to shareholders through the Wafi-Golpu project in Papua New Guinea, reported Mining Weekly.
Negotiations for the special mining lease at Wafi-Golpu continue, with the project pipeline designed to avoid financial strain on the balance sheet.
Nel said: “While we have historically been a gold producer, we are on the cusp of introducing near-term copper, which will further de-risk and diversify our production profile.
“Harmony continues to generate stellar cash flows, and our balance sheet is robust, flexible and in a significant net cash position. The gold price has continued to rally since the beginning of the 2025 calendar year, enhancing our strong financial position.”
Harmony Gold is also progressing with the Eva Copper feasibility study in Queensland, Australia, with production forecast to reach up to 60,000 tonnes of copper annually.
The company is expecting to start copper production from its Eva Copper project by 2028.
Nel also highlighted the company’s growth trajectory, with more than R2bn directed towards high-grade underground gold mining projects and more than R1bn towards high-margin surface operation projects.
These investments are expected to extend the life of major mines such as Moab Khotsong and Mponeng to at least 20 years.
