Harmony Gold Back From Brink as South Africa's Rand Drops: Chartby
The rand’s slump of more than 8 percent against the dollar this year is helping to reverse the fortunes of Harmony Gold Mining Co., causing profit margins to surge and making it the best-performing stock on South Africa’s benchmark equity index.
The Johannesburg-based company, which earns revenue in dollars and pays costs in rand, jumped 83 percent in 2016, compared with a 7.6 percent decline in the 164-member FTSE/JSE Africa All Share Index. The stock has dropped every year since 2012. Harmony probably made about 100,000 rand ($5,940) for every kilogram of gold produced this quarter, from a loss of 14,000 rand a kilogram (2.2 pounds) a year ago. The rand price of gold climbed 12 percent this year, reaching a record on Jan. 11, while the commodity has gained 3 percent in dollars after retreating for three straight years.