Harmony Gold expects to swing to a full year loss

Harmony Gold expects a full year loss due a weak currency.
Harmony Gold expects a full year loss due a weak currency.
Image: Dudu Zitha

South Africa's Harmony Gold Mining said on Thursday it expects to report a loss for the full year as a R1.7 billion derivative loss hits profits though revenue increased on a higher gold price.

The gold miner expects headline loss per share (HEPS) for the year ended June 30, to be between 139 and 169 cents, compared to earnings of 204 cents per share reported in the year-ago period.

HEPS is the main profit measure used in South Africa which strips out certain one-off items.Harmony said it recorded derivative losses of close to 1.7 billion rand compared to gains of R484-million a year ago, driven by a weaker South African rand-U.S. dollar exchange rate and the strengthening of commodity prices during the year.

The company said it had also recorded a loss of about R919 million on its dollar-denominated debt compared to a loss of R78 million a year earlier.

A surge in the gold price, however, contributed to an increase in revenue to R29.2 billion from R26.9 billion.

Harmony is expected to publish its financial results on September 15.

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