Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
Harmony Gold flagged on Friday a rise in interim earnings of as much as 219%, driven by higher gold prices, greater output and foreign exchange gains.
Headline earnings per share for the six months ended December 2020 are expected to come within a range of 761 cents to 795 cents, or between 205% and 219%, a surge from 249 cents in the corresponding period a year ago.
Higher bullion prices helped cushion the impact of the covid-19 pandemic for miners, with Harmony seeing a 31% surge in the average gold price during the half year.
The South African company said it also recorded a gain on bargain purchase of between 1 billion rand ($68.49 million) and 1.2 billion rand on its acquisition of Mponeng – the world’s deepest mine – and related operations from AngloGold Ashanti .
The Johannesburg-listed miner assumed full ownership of the assets from rival AngloGold in October.
But, the gold miner said gains were curbed by an increase in taxation expenses.
Half-year net profit is likely to be between 5.7 billion rand and 5.9 billion rand, Harmony Gold said, with the company’s interim results due on Feb. 23.
($1 = 14.6000 rand)
(By Tanisha Heiberg; Editing by Clarence Fernandez and Sherry Jacob-Phillips)
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