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Shares in Harmony Gold, which has mines in SA and Papua New Guinea, lifted almost 6% on Wednesday after it said its underground grade recoveries have exceeded expectations and it met the upper end of its production guidance in its year to end June.
Headline earnings per share are expected to rise by between 50% and 70% to end June, it said in an update, also reporting it benefited from higher gold prices.
"Full year was a year filled with many highlights as Harmony delivered on its strategic objectives of producing safe, profitable ounces," CEO Peter Steenkamp said in the update.
"We have met the upper end of our production guidance of 1.4 to 1.5 million ounces at an all-in-sustaining cost of below R900 000/kg."
Valued at about R42 billion on the JSE, Harmony is the largest gold producer by volume in SA, and is a significant operator of gold tailings retreatment facilities. In Papua New Guinea, it owns and operates the Hidden Valley mine and owns 50% of the Wafi-Golpu copper-gold project.
The group generated just over R3 billion in headline earnings in its 2022 year.
"We will continue allocating growth capital to our high-grade underground and high-margin surface source operations in South Africa and expanding our international copper-gold portfolio," Steenkamp said on Wednesday.
Shares in Harmony were up 5.7% in late morning trade on Wednesday and are now up more than a quarter on a one-year basis.
