Harmony Gold expects higher earnings

Johannesburg - Shareholders of Harmony Gold Mining Company [JSE:HAR] are advised that a reasonable degree of certainty exists that earnings for the six months ended 31 December 2016 will be higher than for the six months ended 31 December 2015.

This is primarily due to an increase in the average gold spot price received, the recognition of a gain on the Hidden Valley acquisition and the gains recognised on the gold and currency hedges.

Headline earnings per share (Heps) are expected to be between 139 cents and 160 cents per share, which is between 235% and 255% higher than the headline loss of 103c per share reported for the previous comparable period in 2015.

In US dollar terms, Heps are expected to be between 10 and 11 US cents per share, which is between 230% and 255% higher than the headline loss of 8 US cents per share reported for the previous comparable period in 2015.

Earnings per share (EPS) are expected to be between 341c and 361c per share, which is between 434% and 454% higher than the loss of 102c per share reported for the previous comparable period.

In US dollar terms, EPS are expected to be between 24 and 26 US cents per share, which is between 436% and 465% higher than the loss of 7 US cents per share reported for the previous comparable period.

“We achieved all we set out to in the six months from 1 July 2016 to 31 December 2016. We improved our safety performance and increased production. Safe mines are profitable mines and profitable mines strengthen our margins,” said Peter Steenkamp, CEO of Harmony.

The financial information for this trading statement has been based, has not been reviewed or reported on by Harmony’s external auditors. Harmony will publish its financial results for the six months ended 31 December 2016 on 2 February 2017.

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