Company announcements Home » Investors » News » Company announcements » Operational update for the nine months ended 31 March 2024 (9MFY24) 2024 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 2024 (9MFY24)April 30, 2024 Group LTIFR# at 5.60 from 5.50; long-term safety performance trending in the right direction but more needs to be done We have revised our FY24 production and grade guidance upwards and reduced our cost and capital guidance 8% increase in average underground recovered grades to 6.16g/t from 5.68g/t 10% increase in total gold production to 36 777kg (1 182 405oz) from 33 349kg (1 072 195oz) 2% decrease in group all-in sustaining costs (AISC) to R877 965/kg (US$1 457/oz) from R893 985/kg (US$1 592/oz) Conclusion of landmark five-year wage agreement on 4 April 2024 ensures stability and predictability of our labour costs 17% increase in average rand gold price received to R1 162 048/kg (US$1 928/oz) from R992 566/kg (US$1 768/oz) 26% increase in gold revenue to R42 397 million (US$2 262 million) from R33 539 million (US$1 921 million) 171% increase in group operating free cash flow to R8 774 million (US$468 million) from R3 237 million (US$186 million) driven by higher recovered grades at Mponeng, Moab Khotsong, Hidden Valley and Mine Waste Solutions Robust balance sheet with net cash increasing to R1 544 million (US$82 million) from R74 million (US$4 million) in H1FY24 Rolling gold hedge book expanded in anticipation of higher capital expenditure programme Execution of key projects namely Moab Khotsong extension and Mine Waste Solution on track, preparatory work started at Mponeng and early works to begin at Eva Copper Project # LTIFR – lost-time injury frequency rate per million hours worked Unless otherwise indicated, all currency conversions for this reporting period are at theaverage exchange rate of R/US$18.75 (9MFY23: R/US$17.46) Please note that financial information has not been reviewed or audited by the Company’s external auditors OPERATIONAL EXCELLENCE AND HIGH RECOVERED GRADES ENSURE STRONG PRODUCTION AND FREE CASH FLOW GENERATION. ANNUAL GUIDANCE ADJUSTED ON THE BACK OF OUTSTANDING PERFORMANCE Johannesburg, South Africa. Tuesday, 30 April 2024. Harmony Gold Mining Company Limited (Harmony or the Company) is pleased to report its operational update for the nine months ended 31 March 2024 (9MFY24). For this reporting period, Harmony continued delivering an excellent operating performance across its operations, underpinned by higher recovered grades at Mponeng, Moab Khotsong, Hidden Valley and Mine Waste Solutions. The higher recovered grades ensured improved production and lower all-in sustaining costs (AISC) compared to the previous nine-month period ended 31 March 2023 (9MFY23). The higher rand gold price continues to provide Harmony with significant tailwinds, boosting margins and free cash flow generation. Harmony continues to demonstrate operational consistency as a result of its structural advantage and position as a leader in South African gold mining. While the third quarter is traditionally slower due to the January start up and public holidays in March, this is in the plans and we remain on track to comfortably beat our original production, cost and grade guidance for the financial year 2024 (FY24). On the back of this and the strong year-to-date performance, guidance for FY24 has been revised as follows: Total production guidance increased to approximately 1 550 000 ounces from 1 380 000 to 1 480 000 ounces All-in sustaining cost guidance reduced to approximately R920 000/kg, from below R975 000/kg Grade guidance increased to approximately 6g/t, from 5.6 to 5.75g/t Capital guidance for FY24 is adjusted lower to R8 600 million (US$459 million) from R9 500 million (US$507 million), mainly as a result of lower plant and services capital A full comparison of quarter-on-quarter and year-on-year production metrics is provided in the summary table below and in the operating tables which are available in the booklet and on the website at www.harmony.co.za. Average recovered grades at the South African underground operations increased by 8% to 6.16g/t from 5.68g/t in the previous reporting period. Our high-grade underground operations, Mponeng and Moab Khotsong, continue to be the primary drivers behind the improvement in underground recovered grades year to date. Underground recovered grades at these mines increased by 18% to 8.90g/t from 7.53g/t year-on-year and we expect the good grades at Mponeng to be sustained as we mine through the high-grade areas on the 123 and 126 levels. We are encouraged that development grades at Mponeng also continue to trend higher. At our South African optimised underground portfolio, recovered grades increased by 2% to 4.96g/t from 4.87g/t, driven by improved performances at Tshepong North, Tshepong South, Kusasalethu and Target 1. Recovered grades at Hidden Valley remained high into the third quarter of the 2024 financial year, increasing by 65% to 1.65g/t from 1.00g/t in the previous nine-month reporting period as we mined through the high-grade ‘Big Red’ part of the ore body. Going forward, recovered grades at Hidden Valley will be lower as we are now mining through lower-grade areas, as planned. At our South African surface operations, recovered grades increased by 29% to 0.22g/t from 0.17g/t. This was mainly due to a 41% increase in recovered grades at Mine Waste Solutions to 0.168g/t from 0.119g/t. Group gold production in 9MFY24 increased by 10% to 36 777kg (1 182 405oz) from 33 349kg (1 072 195oz) in the previous reporting period. Most of our operations continue to deliver an improved operating performance year-on-year and we have good momentum and flexibility heading into the final quarter of FY24. The rand gold price remains high and increased by 17% to R1 162 048/kg (US$1 928/oz) from R992 566/kg (US$1 768/oz) year-on-year. This has allowed us to further strengthen the balance sheet which remains robust as a result of the strong free cash flow generation. Net cash increased to R1 544 million (US$82 million) from R74 million (US$4 million) at the end of the first six months of this financial year (H1FY24). We currently have R11 591 million (US$612 million1 ) in headroom available through cash and undrawn facilities. For further details download the full 9M FY24 operational report (pdf, 118kb)
