Harmony Gold is sprinting just to stand still
The miner has to spend billions just to preserve current rates of production — prompting market fears over its dividend paying ability
15 September 2022 - 05:00
The effort required to keep the home fires burning for SA’s gold sector appears to be catching up with Harmony Gold, if the response to its 2022 year-end results is anything to go by.
Shares in the company fell to their lowest level in a year — a 19% decline — just after CEO Peter Steenkamp said it would spend R8.5bn in capital expenditure in the current (2023) financial year. That’s about R1.6bn more than previously guided. Capital spend for 2024 will be an equally onerous R8.2bn. For 2022, to date, Harmony stock has sunk 43%...
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