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Harmony Gold says impairments will dent full-year earnings

Harmony Gold says it expects Heps to fall between 164 and 179 cents in its half year financials.

Harmony Gold said on Friday its full-year earnings would be lower than last year due to impairments against a number of its mines as well as foreign exchange losses.

The gold producer said it expected headline earnings per share (Heps) – the main profit measure in South Africa that strips out certain one-off items – to fall to between 164 and 179 cents in the year ended June 30, 2018, from 298 cents a year earlier.

The company is due to report full-year results on Tuesday.

Harmony said it made impairments of R5.3 billion ($386 million) against the following mines – Tshepong, Target 1, Joel, Kusasalethu, Unisel, Masimong, Doornkop and the undeveloped Target North – due to spiralling costs and a subdued gold price.

Its full-year results would also be hit by an exchange rate loss of about R669 million on its US dollar-denominated debt, compared to an exchange rate gain of R215 million in the previous comparable period.

Harmony Gold and other South African gold producers are engaged in annual wage negotiations with unions.

Unions rejected an initial offer from the companies and are now discussing a revised offer.

Harmony Gold’s shares were down 2.5% at R21.77 at 11:22 GMT. 

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Harmony ill today, Tiger yesterday, Std Bank below inflation HEPS growth, Truworths down 7%, Implats and Lonmin dying, MTN very sick-60% loss, Steinhoff broken, Investec Brexit risk, Woolworths halved, Mediclinic 60% down, Foschini off 40%, gold fields firing staff etc.

SA-growth maybe 1 percent, inflation going up, unemployment huge and getting worse, SOEs bust, EWC, NHI, Nationalise SARB, SAA, SARS, SAPS failing. A pot bellied Zuma lieutenant runs the mines-A SACP smooth talker Gordhan who destroyed Eskoms new leadership gives bonuses to eskom staff and Red Rob wants sugar taxes.

Apple trading at USD215…Amazon USD 1866, BH USD 207

Who in their right mind invests here. Risk vs reward totally skewed

End of comments.

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