Company announcements Home » Investors » News » Company announcements » Operational update for the three months ended 30 September 2019 2019 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 three months ended 30 September 2019November 13, 2019 Johannesburg. Wednesday, 13 November 2019. Harmony Gold Mining Company (“Harmony” or “the company”) is pleased to report that good momentum at most of its mines, together with a higher Rand gold price received, resulted in much stronger cash operating cash flows in the first quarter of financial year 2020 (FY20). Gold production from the South African underground operations quarter on quarter was 7% higher at 8 736kg, Total gold production rose by 1.5% to 11 231kg. Underground recovered grade reduced by 5.4% to 5.26g/t at the South African underground operations. Lower grades were anticipated at Joel and Hidden Valley, and at the South African underground mines nearing the end of their lives (Bambanani, Masimong and Unisel). Higher grades are expected from both Joel and Hidden Valley (as we transition from stage 5 to stage 6 cutbacks) towards the fourth quarter. An unexpected geological structure in one high grade raiseline at Kusasalethu resulted in four panels being stopped. Given the erratic nature of the Ventersdorp Contact Reef, some high grade areas are currently being mined at lower grades than expected. We believe Kusasalethu should be back on plan towards the end of FY20. Total gold revenue was 20% higher at about R8 billion – a consequence mainly of a 12% increase in the average Rand gold price received to R683 572/kg and the increase in gold sold during the quarter. Production profit was 34% higher at R2.4 billion. Total cash operating costs increased by 10.9% (R536 million). Once-off winter electricity tariffs (R271 million) and annual wage increases of R181 million were the primary contributors, accounting for 5.5% and 3.7% respectively of the increase in total cash costs. *Operating free cash flow margin is defined as revenue – cash operating cost – capital expenditure + impact of run of mine (ROM) costs as per operating results. For more details contact: Marian van der WaltExecutive: Corporate and Investor relations+27 (0) 82 888 1242 (mobile)Marian.vanderWalt@Harmony.co.za Max ManoeliSenior Investor Relations Coordinator+27 (0) 82 759 1775 (mobile)Max.Manoeli@Harmony.co.za James DuncanR&A Strategic Communications+27 (0)79 336 4010james@rasc.co.za Harmony’s Annual Reports Harmony’s Integrated Annual Report, and its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for the financial year ended 30 June 2019, are available on our website (www.harmony.co.za/invest) Forward-looking statements This report contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), 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 forward-looking statements, including, among others, those relating to our future business prospects, revenues, and the potential benefit of acquisitions (including statements regarding growth and cost savings) wherever they may occur in this report and the exhibits, are necessarily 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 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; estimates of provision for silicosis settlement; statements regarding future debt repayments; estimates of future capital expenditures; the success of our business strategy, development activities and other initiatives; future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans; 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, as well as at existing operations; fluctuations in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions; power cost increases as well as power stoppages, fluctuations and usage constraints; supply chain shortages and increases in the prices of production imports and the availability, terms and deployment of capital; changes in government regulation and the political environment, particularly tax, mining rights, environmental regulation and business ownership including any interpretation thereof; fluctuations in exchange rates and currency devaluations and other macroeconomic monetary policies; the adequacy of the Group’s insurance coverage; and socio-economic or political instability in South Africa, Papua New Guinea, Australia 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 and 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 report or to reflect the occurrence of unanticipated events, except as required by law. The foregoing factors and others described under “Risk Factors” should not be construed as exhaustive.
