JSE-listed mining and exploration company Harmony Gold Mining Company expects to report an increase of up to 42% in its earnings per share (EPS) and headline earnings per share (HEPS), in rand terms, for the six months ended December 31 on the back of a higher gold price and the delivery of safe, predictable and consistent production.

In a February 27 trading statement, the group notes that the average gold price received for the six months under review was 23% higher year-on-year, in rand terms, at R1.41-million a kilogramme. In dollar terms, the average gold price received increased by 28% year-on-year to $2 437/oz.

Harmony reported earlier this month that it had produced between 790 000 oz and 805 000 oz of gold for the first half of its 2025 financial year.

The consistent production and higher gold price have driven the gold miner's revenue and, therefore, earnings for the six months higher. This was, however, partially offset by an increase in production costs owing to planned above-inflation increases in labour and electricity costs; and an increase in the current taxation owing to higher taxable income and higher royalty taxes driven by an increase in revenue and profitability resulting from favourable gold prices.

Nevertheless, Harmony expects to report a 24% to 42% increase in EPS, in rand terms, to between R11.82 and R13.55, compared with the EPS of R9.56 reported for the six months ended December 31, 2023.

In dollar terms, EPS are expected to increase by between 29% and 48% to between $0.66 and $0.76, compared with the EPS of $0.51 reported for the prior comparable period.

HEPS, in rand terms, are expected to increase by between 24% and 42% to between R11.88 and R13.61, compared with the EPS of R9.56 reported for the six months ended December 31, 2023.

In dollar terms, HEPS are expected to be between 31% and 50% higher at between $0.67 and $0.77, compared with the HEPS of $0.51 reported for the prior comparable period.

"The outstanding [half-year] results are on the back of continuous investment in safety, operational excellence and higher quality ounces. We have a stable, predictable, rand-based cost structure and have been delivering operational consistency across the entire group. 

"Our disciplined approach to capital allocation has enabled us to leverage the current high gold price environment to generate exceptionally robust operating free cash flows. Mining with purpose ensures we take Harmony forward sustainably and responsibly as we continue using our wealth of experience and specialised skills to create long-term value for all," CEO Beyers Nel states in the trading update.

Harmony, which has operations in South Africa and in Papua New Guinea, will publish its results for the interim period on March 4.