In This Article:
-
Revenue: Increased by 18% to 37 billion rand.
-
Net Profit: Increased by 33% to 7.9 billion rand.
-
Operating Free Cash Flow: Record generation of 10.4 billion rand or $579 million US dollars.
-
Operating Free Cash Flow Margin: Expanded to 29%.
-
Headline Earnings Per Share: Increased by 33% to 1,270 rand or 71 US cents per share.
-
All-in Sustaining Costs: Approximately 972,000 rand per kilogram or $1690 US dollars per ounce.
-
All-in Costs: Just over 1 million rand per kilogram or $1810 per ounce.
-
Dividend Payout: Record interim dividend of 1.4 billion rand.
-
Net Cash Position: Increased to 7.3 billion rand.
-
EBITDA: Rolling 12-month EBITDA increased by 28% to over 22 billion rand.
-
Cash Operating Costs: Increased by 9% in rand terms, with unit cost per kilogram up 14% to about 814,000 rand or $1400 US dollars per ounce.
-
Production: Group production was about 25,000 kg or 800,000 ounces for the first half.
-
Recovered Grades: Increased to 6.4 g per ton at South African underground operations.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Harmony Gold Mining Co Ltd (NYSE:HMY) delivered a stellar set of interim results with underground recovered grades increasing to 6.4 g per ton, ahead of full-year guidance.
-
Group production reached approximately 800,000 ounces for the first half, surpassing guidance.
-
Record interim operating free cash flows of 10.4 billion rand or $579 million US dollars were generated.
-
Headline earnings per share grew by 33% to 71 US cents per share, with a record interim dividend payout of 1.4 billion rand.
-
The company has a strong balance sheet in a net cash position, with significant headroom for future investments.
Negative Points
-
Total cash operating costs in rand terms increased by 9% in the first half, mainly due to inflationary pressures.
-
Unit cash operating cost per kilogram increased by 14% to about 814,000 rand per kilogram, or about $1400 US dollars per ounce.
-
Royalties increased by 46% due to high gold prices, impacting profitability.
-
Grades at Hidden Valley have seen a step down this year compared to last, which was anticipated but still affects production metrics.
-
The permitting process for the Wafi Gold project is ongoing, causing delays in project execution and potential future revenue.
Q & A Highlights
Q: What strategic changes do you plan to implement as the new CEO of Harmony Gold Mining? A: Beyers Nel, CEO, emphasized the importance of creating shareholder value and maintaining a balanced approach to decision-making. He highlighted the potential of existing ore bodies and the goal to further enhance the company's value without making drastic changes if the current strategy is effective.