Harmony Gold Smashes Earnings Expectations but Shares Plummet on Capex Worries

Harmony Gold Mining Company reported its strongest financial year yet, with revenue rising 34% to ZAR 99.2 billion and net profit more than doubling to ZAR 30 billion.

The company's strong performance was driven by higher gold prices and better margins, which helped boost the all-in sustaining cost margin to 42% from 31% a year earlier.

Despite the impressive results, Harmony shares fell 2.85% in premarket trading to $21.79, suggesting investors were weighing the company's higher spending plans, hedge losses and production transition risks.