Gold price rally helps reduce Harmony Gold's loss for the year

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Harmony Gold's net loss reduced to R850 million for the full year compared to from R2.6 billion in the previous period on the back of stronger gold prices spurred by global uncertainty caused by the Covid-19 pandemic.

"The gold price had rallied to an all-time high following the global economic fallout around Covid-19 and ongoing geopolitical uncertainty, reflecting its safe-haven status with investors," Harmony CEO, Peter Steenkamp, in a note.

The miner wasn't able to fully benefit from a gold price that reached its all-time high in August as gold production slipped 15% in the year to end-June due to the effects of Eskom power outages in the third quarter and Covid-19 interruptions, it said in a statement on Tuesday.

Harmony, which recently finalised the takeover of AngloGold Ashanti's Mponeng mine, has seen its shares more than double this year reaching a market capitalisation of R64.9 billion, up from R17.1 billion at the end of June last year.

Harmony shares were up 4.3% at R107.45 in morning trade on the JSE.

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