Business 17.8.2016 09:03 am

Harmony returns to full-year profit

Mining is conducted at a depth of 1 452 metres at Joel plant, which processes ore. Photo: Reuben Goldberg

Mining is conducted at a depth of 1 452 metres at Joel plant, which processes ore. Photo: Reuben Goldberg

The company says net debt has been reduced by 54% to R1.08 billion in the period under review.

Harmony Gold has on Wednesday said it would pay a dividend, its first in three years, as it reported a return to full-year profit on the back of a 21% increase in the gold price.

The miner recorded a profit of R949 million for the year to the end of June, up from a loss of R4.5 billion the year before. Headline earnings a share amounted to 221 cents, compared with a headline loss of 189 cents a share last time. Revenue was up by 19%, from R15.4 billion to R18.3 billion.

The company said net debt had been reduced by 54% to R1.08 billion in the period under review.

“Having turned around the previous year’s headline loss to headline earnings of 221 SA cents, we felt it prudent to declare a dividend of 50 SA cents,” chief executive Peter Steenkamp said.

Noting that Harmony had increased underground grade for the fourth consecutive year, this year by 6% to 5.02g/t, Steenkamp said: “It was indeed a good year for Harmony.”

– African News Agency (ANA)

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