Gold mining company Harmony expects to report gains in profit and revenue in its coming statement later this month due to increased gold prices as high as 19%.
In a trading update released by the company on Thursday, Harmony said the average gold price received was 19% higher at R683 158/kg, resulting in operating free cash flow margins increasing from 8% to 13%.
Harmony anticipates that the company’s revenue is expected to increase by 12% to R1.7 billion mainly because of the high gold price.
Net profit for the six months ended 31 December 2019 will climb to R1.3 billion due to an increase in revenue. This comes despite an 8% decrease in gold production for the period caused by grade issues at its Gauteng and Free State mines, Kusasalethu and Target.
Headline earning per share and Earning per share are expected to be 249c, “which is 253 SA cents or 6 325% higher than the restated loss of 4 SA cents for the previous comparable period,” Harmony said.
The company will later publish its detailed interim results for the six months ended 31 December 2019 in February 11.