SEATTLE (Scrap Monster): Leading South African gold miner, Harmony Gold, announced 65% dip in half-year profits. The profits during the period were hit partly due to higher production costs. In general, gold miners have been hit by higher inflation over the past six months, which in turn has added to the overall cost of production.
The company reported all-in sustaining costs (AISC) of $1,660 per ounce for the half-year, in comparison with $1,370 per ounce reported a year before. The headline earnings per share were 2.48 rand for the six-month period ended 31st December, 2021. This compares with 7.13 rand a year before. Also, the company announced a dividend of 40 cents.
According to Peter Steenkamp, Chief Executive Officer, Harmony Gold, the Russia-Ukraine crisis may result in near-term price boost for the yellow metal. The prices have surged higher by almost 6% during February 2022 and are poised to report strongest monthly gain since May 2021.
Steenkamp said that the war situation in Ukraine will give a tailwind to the gold price in the short term. However, there exists good support for the dollar price and also the rand price for gold, he noted.
Also, Harmony Gold announced its decision to close the Bambanani mine in the Free State, near Welkom, by June this year. Nearly 1,500 people employed at the mine will be offered a position at company’s other operations.