Harmony delivers
Johannesburg, Tuesday, 21 August 2018. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to announce its operational and financial results for the year ended 30 June 2018 (“FY18”).
“Our growth aspiration to produce 1.5 million ounces and improve the quality of our asset portfolio was realised with the re-investment in Hidden Valley (FY17) and acquisition of Moab Khotsong (FY18). These operations will increase annual production by 450 000 to 500 000 ounces at an average life of mine all-in sustaining unit cost of US$950/oz. In addition, our successful hedging strategy has generated cash flows of R3.6 billion (US$276 million) since implementation in FY16, securing cash flow margins and enabling Harmony to repay debt and fund our quality growth strategy. Harmony has delivered”, said Peter Steenkamp, chief executive officer of Harmony.
Key features of FY18
- Embedding our safety culture through our various training and awareness campaigns
- Production guidance achieved for third consecutive year; produced 1.228Moz of gold at an all-in sustaining cost of R508 970/kg (US$1 231/oz)
- 8% increase in underground recovered grade (six consecutive years of increasing grade)
- Hidden Valley delivers re-investment plan on schedule and within budget
- Successful integration of Moab Khotsong operations
- 31% increase in SA underground resources
- 11.6% increase in SA underground reserves
- R1.8 billion (US$141 million) generated in cash flow through effective hedging strategy
Headline earnings per share for FY18 amounted to 171 SA cents per share (13 US cents per share) compared with 298 SA cents per share (22 US cents) for FY17.
Strategy and FY19
Harmony’s teams remain committed to delivering on Harmony’s strategy to produce safe, profitable ounces and increasing margins. Key focus areas in FY19 will be safety, repaying debt, delivering on our operational plans and substantially progressing the permitting of the Wafi-Golpu project.
Harmony’s full results are available on its website under Financial results.
JSE Sponsor:
J.P. Morgan Equities South Africa Propriety Limited
For more details, contact:
Lauren Fourie
Investor Relations Manager
+27 (0) 71 607 1498
Marian van der Walt
Executive: Investor Relations
+27 (0)82 888 1242
Harmony Gold Mining Company Limited (Harmony), a world-class gold mining and exploration company, has operations and assets in South Africa and Papua New Guinea (PNG). Harmony has more than 60 years’ experience in the industry. Company assets include one open pit mine and several exploration tenements in PNG, as well as 10 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, Harmony owns 50% of the significant Wafi-Golpu copper-gold project – a tier 1 asset – in a joint venture in PNG.
The company’s primary stock exchange listing is on the JSE with a secondary listing on the New York Stock Exchange. The bulk of our shareholders are in South Africa and the United States. Additional information on the company is available on the corporate website, www.harmony.co.za.