Company announcements Home » Investors » News » Company announcements » Operational update for the nine months ended 31 March 2023 (9M FY23) 2023 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 ended 31 March 2023 (9M FY23)May 10, 2023 SALIENT FEATURES (9M FY23 vs 9M FY22*) South Africa total LTIFR# at 5.55, trending below 6.00 for six consecutive quarters Phase 1 of 30MW renewable solar power to be commissioned before the end of FY23 11% increase in gold revenue to R33 982 million (US$1 946 million) from R30 669 million (US$2 033 million) 49% increase in group operating free cash flow to R3 237 million (US$186 million) from R2 174 million (US$144 million) 94% increase in South African underground operating free cash flow to R2 695 million (US$154 million) from R1 392 million (US$92 million) driven by higher recovered grades Mponeng contributed 39% towards group operating free cash flow 5% increase in underground recovered grades to 5.68g/t from 5.39g/t 2% increase in total gold production to 33 785kg (1 086 213oz) from 33 241kg (1 068 718oz) after adjusting for closure of Bambanani at the end of FY22 13% increase in average gold price received to R992 899/kg (US$1 769/oz) from R877 249/kg (US$1 809/oz) 8% increase in group all-in sustaining costs (AISC) to R895 580/kg (US$1 595/oz) from R825 925/kg (US$1 703/oz) Net debt to EBITDA improved to 0.5 times from 0.6 times in previous quarter We remain on track to meet our FY23 production, cost and grade guidance * 9M FY22 – nine-month period ended 31 March 2022 # LTIFR – lost-time injury frequency rate HIGHER RECOVERED GRADES AND EXCELLENT MINING DISCIPLINE DRIVE STRONG PERFORMANCE FROM SOUTH AFRICAN UNDERGROUND OPERATIONS Johannesburg, South Africa. Wednesday, 10 May 2023. Harmony Gold Mining Company Limited (“Harmony” or “the Company”) is pleased to report its operational performance for the nine months ended 31 March 2023 (9M FY23). Average recovered grades at the South African underground operations increased by 7% to 5.68g/t for this reporting period from 5.39g/t in the previous reporting period ending 31 March 2022 (9M FY22) after adjusting for the closure of Bambanani mine at the end of FY22. The higher underground recovered grades continued through from the first half of the financial year into the third quarter, driving a solid group performance in 9M FY23. Group revenue in 9M FY23 increased by 11% to R33 982 million (US$1 946 million) from R30 669 million (US$2 033 million) in the previous reporting period. This was mainly driven by a higher average gold price received, which increased by 13% to R992 899/kg (US$1 769/oz) from R877 249/kg (US$1 809/oz) alongside the abovementioned increase in underground recovered grades over this reporting period. Group production in 9M FY23 increased by 2% to 33 785kg (1 086 213oz) from 33 241kg (1 068 718oz) in 9M FY22, after adjusting for the closure of Bambanani. Cost increases continue to remain within our planning parameters. Cash operating costs in 9M FY23 increased by only 7% to R745 682/kg (US$1 328/oz) from R697 146/kg (US$1 437/oz) in 9M FY22. All-in sustaining costs (AISC) increased by 8% to R895 580/kg (US$1 595/oz) from R825 925/kg (US$1 703/oz) in the previous reporting period. All-in costs increased by 10% to R940 559/kg (US$1 675/oz) from R851 291/kg (US$1 755/oz). As a result, group operating free cash flow in 9M FY23 increased by 49% to R3 237 million (US$186 million) from R2 174 million (US$144 million) in 9M FY22. Major capital is being allocated to quality ounces across Harmony as we continue the transition towards a higher-margin, lower-risk gold producer with a meaningful copper footprint. Our investment in quality ounces is paying off as Mponeng delivered a 192% increase in operating free cash flow of R1 274 million (US$73 million) for this reporting period from R437 million (US$29 million) in the previous nine-month period ending 31 March 2022. Key projects including the extension of the Kareerand tailings storage facility at Mine Waste Solutions and the Zaaiplaats decline at Moab Khotsong are also progressing well. In Papua New Guinea, the mining operation at Hidden Valley mine is expected to intercept the higher-grade Big Red portion of the ore body. This will result in improved gold and silver recovered grades for the remainder of the financial year. Net debt decreased to R4 512 million (US$253 million) from R4 710 million (US$277 million) as at 31 December 2022. The Company’s balance sheet remains strong with net debt to EBITDA decreasing to 0.5 times from 0.6 times a result. We remain focused on safety, effective cost management and delivering consistent production. Harmony has managed to ensure production was not meaningfully impacted by the ongoing energy shortages in South Africa through proactive engineering and mining practices. We have a phenomenal choice of greenfield and brownfield projects at our disposal while our copper projects offer good optionality and diversification. The high-grade assets of Mponeng and Moab Khotsong transformed the Harmony portfolio due to their high-quality ounces. Progress continues to be made on the permitting of Wafi-Golpu with the signing of a non-binding Memorandum of Understanding on 6 April 2023. The results of the updated feasibility study for Eva Copper will be complete and published before the end of the calendar year. Allocating major capital towards our high-grade underground operations, high-margin surface retreatment operations and a growing international gold and copper portfolio is core to creating long term value. A global production profile split between gold and copper, underground and surface mining, and our world-class projects will continue to de-risk the portfolio, improve margins and drive an increase in profitability. Sustainable mining is demonstrating we care for all our stakeholders while striking a balance between short-term cash generation and investing for long-term growth and prosperity. This is what we call “Mining with Purpose”. For further details download the full 9M FY23 operational report (pdf, 138kb)
