South Africa’s Harmony Gold (HARJ.J) expects profit for the six months to Dec. 31 to have risen by as much as 30%, it said on Thursday, with higher metal grades and prices offsetting increased production costs.
Harmony Gold said headline earnings per share (HEPS)- the most common profit measure in South Africa – are expected to come in between 2.72 rand ($0.1483) and 3.22 rand ($0.1755), compared with 2.48 rand in the same period of the previous financial year.
The South African miner, which also has operations in Papua New Guinea, said it was on track to meet annual production guidance between 1.4 million and 1.5 million ounces in its financial year to June 30.
Gold output was between 720,000 ounces and 745,000 ounces for the half year to Dec. 31.
Harmony expects to report a 10% jump in production costs, though its “all-in sustaining costs”, an industry measure of costs, is likely to be less than its cost guidance of 900,000 rand per kilogram.