Harmony pays higher dividend as profits climb

Peter Steenkamp, CEO of Harmony Gold.
Peter Steenkamp, CEO of Harmony Gold.

Cape Town – Harmony Gold [JSE:HAR] on Thursday posted a 35% increase in headline earnings per share of R2.98 and declared a 35c dividend for its year ended June 30, which was a 70% increase on the prior year.

It said it has continued to secure cash margins through a successful hedging strategy, realising gains of R1.747bn. They have also seen a 18% reduction in net debt to R887m.

“Production is safer and more predictable, grade management is disciplined, production delivery exceeds guidance, operations are   generating operational free cash flow and the hedging strategy secures cash margins,” Peter Steenkamp, chief executive officer of Harmony, said in a statement.

“Combined with Harmony’s low net debt compared to peers and its excellent growth opportunities, Harmony continues to have a strong investment case. Our priorities are to grow our ounces and to pay dividends from profits.”

Focused exploration targets, unlocking the value of Golpu and identifying value accretive acquisitions remain key in improving the quality of Harmony’s assets, driving down costs and achieving its aspiration of being a 1.5 Moz producer in financial year 2019, the company explained.

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