Company announcements Home » Investors » News » Company announcements » Operational update for the nine months and quarter ended 31 March 2018 2018 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Operational update for the nine months and quarter ended 31 March 2018May 02, 2018 HARMONY CONFIDENT THAT IT WILL DELIVER ON FY18 GUIDANCE Johannesburg. Wednesday 2 May 2018. Harmony Gold Mining Company Limited (“Harmony” or “the company”) is pleased to provide an operational update for the nine months and quarter ended 31 March 2018. Chief Executive Officer, Peter Steenkamp, commented that: “We are on track to meet annual production guidance of 1.18 Moz. Harmony’s performance in the fourth quarter of FY18 will be boosted with the inclusion of Moab Khotsong and higher production at Hidden Valley where production is ramping up.” Regrettably three fatalities were recorded in two separate incidents during the quarter. We will continue to make every effort to ensure safe working areas and that our employees are safe. Operational excellence during the March 2018 quarter was key in supporting steady production and underground grade performance and achieving good cost control. Moab Khotsong became part of the Harmony asset portfolio on 1 March 2018, producing 764kg (24 563oz) of gold attributable to the March 2018 month. The integration of Harmony’s information technology systems, management and operating processes at the operation is progressing well. The operating results for Moab Khotsong and the Harmony group’s all-in sustaining cost (AISC) will be provided in the full year FY18 results to be released in August 2018. FY18 PRODUCTION GUIDANCE UPDATE Group gold production is updated to 1.18 million ounces (from 1.1 million ounces) following the inclusion of the Moab Khotsong operation from 1 March 2018. Annual AISC cost guidance is unchanged at R520 000/kg. Production and grade guidance for Moab Khotsong for the four months ending 30 June 2018 is 2 500kg (80 000oz) and 8.00g/t respectively. OPERATIONAL RESULTS – NINE MONTHS ENDED MARCH 2018 COMPARED TO NINE MONTHS ENDED MARCH 2017 Note: Discussion below excludes the operational results of Moab Khotsong. Group production was steady at 25 401 kg (816 663oz) (up by 1%), underground grade 3% higher at 5.19g/t and cash operating costs well contained at R433 502/kg (5% increase in US Dollar terms to US$1 043/oz) when compared to the comparative nine months ended 31 March 2017. The average gold price received including the Rand/gold hedge was R574 451/kg (US$ 1 383/oz). For translation purposes the average Rand/US$ exchange rate strengthened by 6%. OPERATIONAL RESULTS – Q3FY18 TO Q3FY17 Note: Discussion below excludes the operational results of Moab Khotsong. Seasonally, the March quarter performance is influenced by a slower production start-up after the December holiday period. In addition, the Easter holiday period fell within the March 2018 quarter. The average gold price received including the Rand/gold hedge was R559 538/kg (US$ 1 456/oz). Group production and underground grade remained flat at 7 983 kg (256 660oz), and 5.02g/t respectively. Cash operating costs increased by 5% to R467 090/kg (16% increase in US Dollar terms to US$1 215/oz) when compared to the comparative quarter ended 31 March 2017. For translation purposes the average Rand/US$ exchange rate strengthened by 10%. For more details contact: Marian van der WaltExecutive: Investor Relations+27 (0) 82 888 1242 (mobile) Lauren FourieInvestor Relations Manager+27 (0) 71 607 1498 (mobile) Forward-looking statements This report contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, with respect to our financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters. These include all statements other than statements of historical fact, including, without limitation, any statements proceeded by, followed by, or that include the words “targets”, “believes”, “expects”, “aims” “intends” “will”, “may”, “anticipates”, “would”, “should”, “could”, “estimates”, “forecast”, “predict”, “continue” or similar expressions or the negative thereof. These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report and the exhibits to this report, are essentially estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this report. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business conditions in South Africa, Papua New Guinea, Australia and elsewhere, estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold and other metals production and sales, estimates of future cash costs, estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices, statements regarding future debt repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, estimates of reserves statements regarding future exploration results and the replacement of reserves, the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, fluctuations in the market price of gold, the occurrence of hazards associated with underground and surface gold mining, the occurrence of labour disruptions, power cost increases as well as power stoppages, fluctuations and usage constraints, supply chain shortages and increases in the prices of production imports, availability, terms and deployment of capital, changes in government regulation, particularly mining rights and environmental regulation, fluctuations in exchange rates, the adequacy of the group’s insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea and other countries in which we operate. For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the company’s latest Integrated Annual Report on Form 20-F which is on file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as required by law.
