Wrap Text
Operational update for the three months ended 30 September 2022
Harmony Gold Mining Company Limited
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
("Harmony" or "the Company")
OPERATIONAL UPDATE
for the three months ended 30 September 2022
("Q1FY23")
Salient features
(Q1FY23 vs Q4FY22)
- South Africa total LTIFR at 5.68, trending below 6.00 for
four consecutive quarters
- Operating free cash flow up 17% to R857m (US$50m) driven
by South African underground performance
- Tshepong Operations disaggregation delivers outstanding
results, generating operating free cash flow of R314m
(US$18m), 37% of group
- Underground recovered grades up 1% to 5.35g/t from 5.30g/t
- Total gold production down 4% to 11 396kg (366 390oz)
from 11 879kg (381 919oz) mainly due to the closure of
Bambanani at the end of FY22
- Average gold price received up 1% to R954 916/kg
(US$1 743/oz) from R944 671/kg (US$1 885/oz) last quarter
- Group all-in sustaining costs ("AISC") increased 5% to
R907 864/kg (US$1 657oz) from R865 523/kg
(US$1 727/oz) impacted by Eskom winter electricity tariffs
- Group all-in costs ("AIC") increased 4% to R946 204/kg
(US$1 727/oz) from R906 706/kg (US$1 810/oz)
- Net debt to EBITDA increased to 0.26x from 0.1x due to
working capital movements and currency translation
STRONG PERFORMANCE FROM SOUTH
AFRICAN SURFACE AND UNDERGROUND
MINES. TSHEPONG NORTH AND SOUTH SHINE
Johannesburg, South Africa. Thursday, 17 November 2022.
Harmony Gold Mining Company Limited ("Harmony" or "the Company") is
pleased to report our operational performance for the three months ended
30 September 2022 ("Q1FY23").
OVERVIEW
The operational results for the first quarter of the financial year 2023
were driven primarily by a good performance from the South African ("SA")
underground and SA surface operations. As a rand-cost producer, the gold
price received continued to move in Harmony's favour,
increasing 1% to R954 916/kg (US$1 743/oz) from R944 671/kg
(US$1 885/oz) in the previous quarter ("Q4FY22"). This resulted in a 1%
increase in gold revenue for Q1FY23 to R11 226 million (US$659 million)
from R11 073 million (US$711 million) in the previous quarter. Improved
performances at our SA high-grade and SA optimised underground
operations resulted in total group operating free cash flow increasing
17% to R857 million (US$50 million) from R731 million (US$47 million).
Group operating cash flow margins improved to 8% from 7% in the
previous quarter.
Total group production declined 4% to 11 396kg (366 390oz) from
11 879kg (381 919oz) in Q4FY22. This was mainly due to the closure of
Bambanani. SA underground production decreased by 2% to 8 467kg
(272 219oz) from 8 643kg (277 880oz) in the previous quarter. Adjusting
for the closure of Bambanani, which delivered 317kg (10 192oz) in the
previous quarter, the remaining SA underground production increased by
2% to 8 467kg (272 219oz). Production was further supported
by a 1% increase in underground recovered grades to 5.35g/t from
5.30g/t. Production at the SA surface operations increased 4%
to 1 917kg (61 634oz) from 1 835kg (58 996oz) on the back of an
improved performance from Mine Waste Solutions. The ongoing energy
crisis in South Africa had a negative impact on group production, with
approximately 100kg (3 215oz) in production lost as a result of load
curtailment this quarter. Production from our international segment
declined 28% to 1 012kg (32 537oz) from 1 401kg (45 043oz). Lower
production at Hidden Valley in Papua New Guinea ("PNG") was expected
due to planned waste stripping to expose higher grades.
Following the restructure and disaggregation of Tshepong Operations
at the end of the previous financial year, Tshepong North and Tshepong
South both delivered strong operational performances due to better
recovered grades. Tshepong North's operating free cash flow margins
improved to 11% this quarter from -13% in Q4FY22 while Tshepong
South's operating free cash flow margins improved to 22% from 9%.
These two mines contributed R314 million (US$18 million), or 37% of
group operating free cash flow, driving much of the improvement in the
SA underground optimised portfolio. Operating free cash flow margins for
the SA underground operations improved to 9% from 2% in the previous
quarter. Margins at the high-grade operations, Mponeng and Moab
Khotsong, each improved to 13% from 5% and 9% respectively. The free
cash flow contribution of R407 million (US$24 million) from our high-grade
operations represents 48% of total group operating free cash flow.
Hidden Valley generated R82 million (US$5 million) in operating free
cash flow this quarter.
Group AISC increased by 5% to R907 864/kg (US$1 657/oz) from
R865 523/kg (US$1 727/oz) in Q4FY22 mainly due to lower production at
Hidden Valley, Kusasalethu and Target 1.
Net debt to EBITDA increased to 0.26 times in this quarter from 0.1 times
in the previous quarter on the back of currency translation and working
capital movements. Net debt increased to R2 070 million (US$114 million)
from R731 million (US$45 million).
OUTLOOK
Harmony is a 1.4 to 1.5 million ounce gold producer with near-term
copper prospects. On the back of the strong quarterly performance
from the South African assets and the favourable US$/Rand exchange
rate, Harmony remains on track to meet the FY23 cost, grade and
production guidance provided in August 2022. Our four strategic pillars
are: responsible stewardship, operational excellence, cash certainty
and effective capital allocation. Continued focus is placed on delivering
safe production and value creation through execution excellence and
productivity initiatives. To boost our existing copper footprint, Harmony
announced the acquisition of Eva Copper in Australia on 6 October 2022.
Alongside the Tier 1 Wafi-Golpu project in PNG, this investment introduces
lower-risk, near-term copper into the Harmony portfolio. This acquisition
complements our investments in our higher-grade and higher-margin assets and
will ensure we continue to deliver on our strategy of safe profitable ounces.
Our embedded approach to sustainable mining practices and meaningful
investment in organic and inorganic growth will deliver long-term value
creation for all our stakeholders.
THREE MONTHS OF THE FINANCIAL YEAR 2023 - KEY OPERATIONAL METRICS
Q-on-Q Y-on-Y
Unit Q1FY23 Q4FY22 (%) Q1FY22 (%)
Average gold price received R/kg 954 916 944 671 1 832 756 15
$/oz 1 743 1 885 (8) 1 771 (2)
Underground yield g/t 5.35 5.30 1 5.27 2
Gold produced total kg 11 396 11 879 (4) 12 868 (11)
oz 366 390 381 919 (4) 413 714 (11)
SA optimised underground(1) kg 5 345 5 102* 5 5 470* (2)
oz 171 845 164 034* 5 175 864* (2)
SA high grade underground(2) kg 3 122 3 224 (3) 3 504 (11)
oz 100 374 103 654 (3) 112 656 (11)
SA surface(3) kg 1 917 1 835 4 2 273 (16)
oz 61 634 58 996 4 73 078 (16)
International (Hidden Valley) kg 1 012 1 401 (28) 1 138 (11)
oz 32 537 45 043 (28) 36 587 (11)
Total cash costs R/kg 757 726 712 240 (6) 663 458 (14)
$/oz 1 383 1 422 3 1 411 2
Group AISC R/kg 907 864 865 523 (5) 795 086 (14)
US$/oz 1 657 1 727 4 1 691 2
Group AIC R/kg 946 204 906 706 (4) 814 603 (16)
US$/oz 1 727 1 810 5 1 732 -
Average exchange rate R/US$ 17.04 15.58 9 14.63 16
(1) Tshepong South, Tshepong North, Target 1, Joel, Masimong, Doornkop and Kusasalethu
(2) Mponeng and Moab Khotsong
(3) Mine Waste Solutions, Phoenix, Central Plant, Savuka Tailings, Dumps and Kalgold
* Excludes Bambanani due to closure at the end of FY22
RESPONSIBLE STEWARDSHIP
Environmental, social and governance (ESG) practices are embedded in our
strategy and determine how we operate across the globe. We believe this
will create lasting legacies and a sustainable future for all our stakeholders.
Responsible stewardship is the first of our four strategic pillars and an
integrated and risk-based approach to sustainable development guides
how we operate. Harmony remains committed to good governance,
transparent reporting and comprehensive disclosures. Our latest ESG and
Taskforce for Climate-related Financial Disclosure ("TCFD") reports are
available at http://www.harmony.co.za
SAFETY
The safety of our people remains our top priority. Safety will always take
precedence over production. Through our Thibakotsi (prevent harm) culture
transformation programme and Harmony Risk Management framework, we
continue to embed a proactive safety culture at all our operations. Our goal
remains zero-loss of life.
Q1FY23 marked the fourth consecutive quarter where the Lost Time Injury
Frequency Rate ("LTIFR") was below six (5.68 per million hours worked)
at our SA operations. Reportable injuries relating to fall of ground, rail
bound equipment and winch injury frequency rate also improved for
the quarter. As part of our drive to emphasize the importance of safety,
a comprehensive visible felt leadership initiative was conducted at all
Harmony's operations on 8 September 2022. On 6 October 2022, Harmony
again hosted a safety meeting made up of all the general managers and
plant managers to continue driving the safety message.
We have made considerable progress to improve the overall safety
at Harmony. We are therefore deeply saddened by the loss of the
following colleagues:
- Mr Juliao Macamo from our Moab Khotsong operation who lost his life
in a fall of ground incident on 13 August 2022
- Mr Ernesto Euseblo Macuacua from our Tshepong North operation who
lost his life in a fall of ground incident on 7 November 2022
We extend our deepest condolences to the families and loved ones of our
colleagues who lost their lives.
It is imperative that we continue to adhere to the various controls
and continuously improve our systems, ensuring work places are
safe at all times. We are working continuously to ensure a culture of
safety throughout Harmony and we believe that zero-loss of life is
indeed possible.
Please see the Company's FY22 integrated annual report and website for
more information on our safety initiatives: http://www.harmony.co.za.
HEALTH
Harmony remains dedicated to delivering best-in-class employee health
and wellness. The company also extends its health drive to include mental
health, ensuring that every employee can live a fulfilled and healthy life.
Occupational lung diseases, particularly silicosis, noise induced hearing
loss ("NIHL") and heat related illnesses at our South African operations
are addressed through a pro-active, risk-based approach. In PNG, NIHL is a
significant focus area although there have been no recorded cases.
Non-occupational diseases like HIV/AIDS, tuberculosis and other chronic
illnesses continue to receive full attention through all ongoing initiatives at
our healthcare hubs.
Over 90% of our employees volunteered to be vaccinated for Covid-19
and we continue to monitor the situation closely. More information on
employee health and wellness can be found at http://www.harmony.co.za and in
our ESG report.
ENVIRONMENT
As a company, we believe the responsible management of natural
resources and ecosystems is vital to ensure a sustainable future not only for
Harmony, but also our host communities and future generations.
In alignment with the Science Based Targets initiative, we finalised
new environmental targets to be implemented from FY23 to FY27.
Our baseline group environmental performance targets focus on our
strategic imperatives and material risks, including energy, water, land and
biodiversity. These targets have been set to ensure we achieve net zero
emissions by 2045.
To further help us achieve our decarbonisation goals, the first of
a three-phased renewable (solar) energy project is progressing well
and is expected to contribute 30MW into the energy supply by the end
of Q4FY23.
More information on our environmental, energy and decarbonisation
initiatives can be found at http://www.harmony.co.za and in our ESG and
TCFD reports.
HIGH-GRADE SA UNDERGROUND OPERATIONS
Moab Khotsong and Mponeng delivered 3 122kg (100 374oz) of gold
this quarter, a 3% decline from the 3 224kg (103 654oz) produced in the
previous quarter. Production from these two operations represented 27%
of group production.
Mponeng recovered grades improved 4% to 7.29g/t from 7.04g/t while
tonnes milled remained flat for the quarter. This resulted in a 3% increase
in gold production to 1 634kg (52 534oz) from 1 584kg (50 927oz) while
AISC also improved 4% to R883 709/kg from R921 520/kg.
At Moab Khotsong, safety-related stoppages resulted in lower volumes
and underground recovered grades. Yields decreased 2% to 6.23g/t from
6.36g/t, while gold production declined 9% to 1 488kg (47 840oz) from
1 640kg (52 727oz).
OPTIMISED SA UNDERGROUND OPERATIONS
The optimised SA operations comprise Tshepong North, Tshepong South,
Doornkop, Joel, Target 1, Kusasalethu and Masimong. These mines -
contributed 5 345kg (171 845oz) this quarter compared to 5 419kg
(174 225oz) in the previous quarter which included 317kg (10 192 oz)
from Bambanani. Production from these optimised assets represented 47%
of group production. AISC at the optimised assets improved 3%.
Underground recovered grade from Tshepong North improved by 12% to
4.25g/t from 3.80g/t. After the unbundling, higher grades were targeted
and a more focussed approach was taken to mining. While the volumes
were slightly lower, the mine is more profitable with AISC improving 15%
to R897 520/kg from R1 052 814/kg.
At Tshepong South, tonnes milled increased 6% while underground
recovered grade improved 11% to 6.57g/t from 5.94g/t. This resulted
in a 17% increase in production to 973kg (31 283oz) from 832kg
(26 749oz). AISC improved 13% to R779 756/kg from R895 193/kg in the
previous quarter.
Doornkop underground recovered grades improved 42% to 5.07g/t from
3.58g/t and tonnes milled increased 5% to 228 000 tonnes. The increase
in grade was due to a mill clean-up at the plant this quarter. The release
of inventory drove the 49% increase in gold production to 1 155kg
(37 134oz) from 776kg (24 949oz) in the previous quarter. AISC at
Doornkop improved 24% to R764 087/kg from R998 311/kg.
Joel had its second consecutive profitable quarter and is performing well.
Tonnes milled increased 7% to 127 000 tonnes. Underground recovered
grades were marginally lower at 4.13g/t from 4.19g/t due to waste dilution
but gold production increased 5% to 525kg (16 879oz) from 499kg
(16 043oz).
Target 1 production was down 13% to 326kg (10 481oz) from 376kg
(12 089oz). Underground recovered grades declined 13% to 2.99g/t from
3.42g/t due to a pillar failure which restricted access to high-grade ore and
delayed the mining of high-grade massives.
At Kusasalethu, tonnes milled increased 13% but underground recovered
grades dropped by 29% from 7.73g/t to 5.49g/t as a result of increased
off-reef mining as we negotiated poor ground conditions. This resulted in
low recovered grades from a very high-grade area.
SA SURFACE OPERATIONS
Total gold production from the South African surface operations increased
5% to 1 917kg (61 634oz) from 1 835kg (58 996oz) in Q4FY22.
At Mine Waste Solutions, recovered grades improved 5% to 0.114g/t
from 0.109g/t and volumes increased 15% to 6.3 million tonnes from
5.5 million tonnes. This resulted in a 19% increase in production to 711kg
(22 859oz) from 600kg (19 290oz).
INTERNATIONAL - HIDDEN VALLEY
Total production from the Hidden Valley operations declined 28% to
1 012kg (32 537oz) from 1 401kg (45 043oz). The decline in quarterly
production was in line with plan and a result of lower grade material
being processed while waste stripping takes place to open up the stage 7
orebody. Gold recovery grades therefore decreased 32% to 1.01g/t
from 1.48g/t. The grade profile is expected to improve in the second half of
the financial year.
Silver production decreased 6% to 19 955kg (641 579oz) from 21 307kg
(685 022oz). Silver recovery grades decreased 12% to 19.87g/t
from 22.58g/t.
Crushed material transported via the overland conveyor belt and tonnes
milled continue to improve as a result of a dedicated improvement
programme and coaching and development of key skills in our mining and
fixed plant maintenance teams.
AISC
Group AISC for the reporting period increased by 5% to R907 864/kg
(US$1 657/oz) from R865 523/kg (US$1 727/oz). The primary driver behind
the increase this quarter was the higher Eskom winter electricity tariffs and
increases in AISC at Hidden Valley, Kusasalethu and Target 1.
SA underground AISC improved by 3% to R895 447/kg (US$1 634/oz)
from R918 639/kg (US$1 833/oz) in Q4FY22.
AISC at SA surface operations increased by 4% to R835 803/kg
(US$1 526/oz) from R803 391/kg (US$1 603/oz) primarily as a result of
higher costs at the waste rock dumps. This was driven by lower recovery
grades and higher transportation costs as the higher grade dumps are
being depleted. Waste rock dumps' AISC increased 21% to R1 047 900/kg
from R864 730/kg.
International (Hidden Valley) AISC increased in line with plan by 81% to
R1 153 145/kg (US$2 100/oz) from R636 155/kg (US$1 274/oz). This
was a result of the waste stripping taking place and processing of lower
grade stockpiles whilst the stage 7 orebody is opened up. In addition, the
ongoing drought in PNG has necessitated on-site diesel power generation,
which has contributed an additional US$91/oz to our AISC for the quarter.
PROJECTS
Our pipeline of projects is aimed at delivering value realisation by lowering
Harmony's overall risk profile and improving our margins. This includes
the improvement in safety and responding to climate change through
various energy saving initiatives. We are investing in those projects that will
generate positive financial, social and environmental returns for many years
to come.
In South Africa, the Zaaiplaats project at Moab Khotsong is progressing
well and in execution. At Mine Waste Solutions, the environmental
authorisation and the water use licence for the Kareerand tailings
expansion have been received but we are still waiting for the approval
of the licence to begin construction. The Target 1 optimisation project
is expected to be completed in January 2023. The first phase of the
30MW solar renewable project is underway and is expected to be complete
in FY23. The feasibility study for phase two (137MW) of our renewable
projects is underway and is expected to be completed in early 2023.
In Papua New Guinea, Harmony and our joint venture partner Newcrest
Mining Limited, continue to work with the PNG Government to progress
permitting of the Wafi-Golpu Project and obtain a Special Mining Lease.
The Hidden Valley Mine extension project has commenced with the Tailings
Storage Facility 2 ("TSF 2") regulatory approval obtained during the
quarter. Detail design work on TSF 2 is underway.
Since the announcement of the acquisition of Eva Copper in Queensland,
Australia on 6 October 2022, Harmony has begun engaging with
project stakeholders in the Cloncurry, Mount Isa and broader North
West communities as we take the project forward. We have begun a
detailed review of the existing project feasibility study prepared by Copper
Mountain. We expect to conclude the transaction in early 2023, subject to
conditions precedent being fulfilled.
ANNUAL PRODUCTION, COST AND GRADE
GUIDANCE
Production guidance for FY23 remains unchanged and is estimated to be
between 1.4Moz and 1.5Moz at an AISC of under R900 000/kg.
Underground recovered grade is planned to be between 5.45g/t
and 5.60g/t.
HEDGING
Realised overall derivative gains for the quarter amounted to R236 million
(US$13 million). The average forward Rand gold price on the hedge book
has now increased to R1 036 000/kg as at 30 September 2022 from
R1 016 000kg as at 30 June 2022.
HEDGE POSITION AS AT 30 SEPTEMBER 2022
FY2023 FY2024 FY2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total
Rand gold
Forward contracts koz 72 72 70 44 32 16 - - 306
R'000/kg 999 1 019 1 039 1 061 1 082 1 107 - - 1 036
Dollar gold
Forward contracts koz 9 9 9 9 8 4 - - 48
$/oz 1 867 1 826 1 836 1 860 1 926 2 009 - - 1 874
Total gold koz 81 81 79 53 40 20 - - 354
Currency hedges
Rand dollar
Zero cost collars $m 36 42 42 42 42 42 42 36 324
Floor R/$ 16.59 16.99 17.02 17.21 17.36 17.52 17.70 17.92 17.29
Cap R/$ 18.55 18.96 19.00 19.21 19.36 19.52 19.70 19.92 19.28
Forward contracts $m 12 12 18 18 18 18 18 - 114
R/$ 17.95 17.95 17.99 18.17 18.31 18.49 18.68 - 18.25
Total dollar $m 48 54 60 60 60 60 60 36 438
Dollar silver
Zero cost collars koz 270 210 105 30 30 20 - - 665
Floor $/oz 25.97 25.62 25.49 25.14 25.41 25.68 - - 25.71
Cap $/oz 29.00 28.81 28.58 28.14 28.41 28.68 - - 28.80
OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC)
SOUTH AFRICA
UNDERGROUND PRODUCTION
Three TOTAL
months Moab Tshepong Tshepong UNDER-
ended Khotsong Mponeng North South Doornkop Joel Target 1 Kusasalethu Masimong Bambanani(3) GROUND
Ore milled t'000 Sep-22 239 224 222 148 228 127 109 168 119 - 1 584
Jun-22 258 225 254 140 217 119 110 149 121 37 1 630
Yield g/tonne Sep-22 6.23 7.29 4.25 6.57 5.07 4.13 2.99 5.49 4.20 - 5.35
Jun-22 6.36 7.04 3.80 5.94 3.58 4.19 3.42 7.73 4.16 8.57 5.30
Gold produced kg Sep-22 1 488 1 634 944 973 1 155 525 326 922 500 - 8 467
Jun-22 1 640 1 584 964 832 776 499 376 1 152 503 317 8 643
Gold sold kg Sep-22 1 595 1 695 968 988 1 200 536 300 957 512 19 8 770
Jun-22 1 527 1 526 949 818 734 491 400 1 110 495 312 8 362
Gold price received R/kg Sep-22 966 735 958 899 969 247 968 917 968 493 969 448 974 730 968 215 969 115 962 579 966 715
Jun-22 961 149 966 650 957 584 957 918 961 143 956 782 956 400 955 908 956 913 957 974 959 883
Gold revenue(1) R'000 Sep-22 1 541 942 1 625 333 938 231 957 290 1 162 192 519 624 292 419 926 582 496 187 18 289 8 478 089
Jun-22 1 467 675 1 475 108 908 747 783 577 705 479 469 780 382 560 1 061 058 473 672 298 888 8 026 544
Cash operating cost R'000 Sep-22 1 091 482 1 244 224 698 963 637 590 732 877 398 353 509 551 864 642 426 594 - 6 604 276
(net of by-product credits) Jun-22 1 034 625 1 218 351 741 500 574 713 684 993 359 065 457 613 798 216 389 384 265 787 6 524 247
Inventory movement R'000 Sep-22 29 459 33 765 14 188 6 585 47 320 6 024 (27 886) 35 694 7 125 15 728 168 002
Jun-22 (26 264) (48 225) (13 983) (12 057) (90 305) (11 240) 22 858 (26 596) (5 200) (4 264) (215 276)
Operating costs R'000 Sep-22 1 120 941 1 277 989 713 151 644 175 780 197 404 377 481 665 900 336 433 719 15 728 6 772 278
Jun-22 1 008 361 1 170 126 727 517 562 656 594 688 347 825 480 471 771 620 384 184 261 523 6 308 971
Production profit R'000 Sep-22 421 001 347 344 225 080 313 115 381 995 115 247 (189 246) 26 246 62 468 2 561 1 705 811
Jun-22 459 314 304 982 181 230 220 921 110 791 121 955 (97 911) 289 438 89 488 37 365 1 717 573
Capital expenditure R'000 Sep-22 256 352 167 670 132 981 111 886 180 343 64 198 106 194 50 302 3 557 - 1 073 483
Jun-22 300 546 176 509 287 469 136 037 162 511 78 749 108 393 61 857 11 912 - 1 323 983
Cash operating costs R/kg Sep-22 733 523 761 459 740 427 655 283 634 526 758 768 1 563 040 937 790 853 188 - 780 002
Jun-22 630 869 769 161 769 191 690 761 882 723 719 569 1 217 056 692 896 774 123 838 445 754 859
Cash operating costs R/tonne Sep-22 4 567 5 555 3 148 4 308 3 214 3 137 4 675 5 147 3 585 - 4 169
Jun-22 4 010 5 415 2 919 4 105 3 157 3 017 4 160 5 357 3 218 7 183 4 003
Cash operating cost R/kg Sep-22 905 802 864 072 881 297 770 273 790 667 881 050 1 888 788 992 347 860 302 - 906 786
and Capital Jun-22 814 129 880 593 1 067 395 854 267 1 092 144 877 383 1 505 335 746 591 797 805 838 445 908 045
All-in sustaining cost R/kg Sep-22 805 284 883 709 897 520 779 756 764 087 871 350 1 948 919 1 022 713 914 971 827 789 895 447
Jun-22 808 618 921 520 1 052 814 895 193 998 311 843 454 1 516 214 782 136 831 207 885 487 918 639
Operating free cash flow % Sep-22 13% 13% 11% 22% 21% 11% (111)% 1% 13% 100% 9%
margin(2) Jun-22 9% 5% (13)% 9% (20)% 7% (48)% 19% 15% 11% 2%
OPERATING RESULTS – QUARTER ON QUARTER (RAND/METRIC) continued
SOUTH AFRICA
SURFACE PRODUCTION
Three Central TOTAL
months Mine Plant Savuka TOTAL SOUTH Hidden TOTAL
ended Waste Solutions Phoenix Reclamation Tailings Dumps Kalgold SURFACE AFRICA Valley HARMONY
Ore milled t'000 Sep-22 6 263 1 607 1 006 987 1 133 332 11 328 12 912 1 004 13 916
Jun-22 5 519 1 567 1 013 969 1 298 348 10 714 12 344 944 13 288
Yield g/tonne Sep-22 0.114 0.123 0.143 0.146 0.380 0.87 0.17 0.80 1.01 0.82
Jun-22 0.109 0.128 0.157 0.152 0.353 0.78 0.17 0.85 1.48 0.89
Gold produced kg Sep-22 711 198 144 144 431 289 1 917 10 384 1 012 11 396
Jun-22 600 200 159 147 458 271 1 835 10 478 1 401 11 879
Gold sold kg Sep-22 694 201 137 135 410 285 1 862 10 632 1 031 11 663
Jun-22 602 205 173 139 462 269 1 850 10 212 1 404 11 616
Gold price received R/kg Sep-22 781 914 945 244 968 467 957 578 963 634 971 063 894 972 954 150 962 808 954 916
Jun-22 774 437 940 727 960 150 969 511 957 013 959 959 897 458 948 574 916 284 944 671
Gold revenue(1) R'000 Sep-22 631 946 189 994 132 680 129 273 395 090 276 753 1 755 736 10 233 825 992 655 11 226 480
Jun-22 566 282 192 849 166 106 134 762 442 140 258 229 1 760 368 9 786 912 1 286 463 11 073 375
Cash operating cost R'000 Sep-22 483 203 129 704 85 888 83 698 449 510 219 208 1 451 211 8 055 487 579 563 8 635 050
(net of by-product credits) Jun-22 399 720 112 492 74 515 71 309 397 088 207 466 1 262 590 7 786 837 673 857 8 460 694
Inventory movement R'000 Sep-22 (17 338) (149) (5 590) (6 287) (20 457) (6 324) (56 145) 111 857 37 245 149 102
Jun-22 12 622 3 465 6 198 (3 890) 2 275 2 275 22 945 (192 331) (22 831) (215 162)
Operating costs R'000 Sep-22 465 865 129 555 80 298 77 411 429 053 212 884 1 395 066 8 167 344 616 808 8 784 152
Jun-22 412 342 115 957 80 713 67 419 399 363 209 741 1 285 535 7 594 506 651 026 8 245 532
Production profit R'000 Sep-22 166 081 60 439 52 382 51 862 (33 963) 63 869 360 670 2 066 481 375 847 2 442 328
Jun-22 153 940 76 892 85 393 67 343 42 777 48 488 474 833 2 192 406 635 437 2 827 843
Capital expenditure R'000 Sep-22 147 053 12 400 151 5 156 586 79 339 244 685 1 318 168 438 464 1 756 632
Jun-22 139 479 15 282 5 661 7 495 3 997 83 937 255 851 1 579 834 144 979 1 724 813
Cash operating costs R/kg Sep-22 679 610 655 071 596 444 581 236 1 042 947 758 505 757 022 775 760 572 691 757 726
Jun-22 666 200 562 460 468 648 485 095 867 004 765 557 688 060 743 161 480 983 712 240
Cash operating costs R/tonne Sep-22 77 81 85 85 397 660 128 624 577 621
Jun-22 72 72 74 74 306 596 118 631 714 637
Cash operating cost R/kg Sep-22 886 436 717 697 597 493 617 042 1 044 306 1 033 035 884 661 902 702 1 005 956 911 871
and Capital Jun-22 898 665 638 870 504 252 536 082 875 731 1 075 288 827 488 893 937 584 465 857 438
All-in sustaining cost R/kg Sep-22 747 860 706 585 592 141 611 607 1 047 900 1 059 292 835 803 884 087 1 153 145 907 864
Jun-22 802 182 641 194 503 641 484 457 864 730 1 139 450 803 391 897 054 636 155 865 523
Operating free cash flow % Sep-22 (16)% 25% 35% 31% (14)% (6)% (1)% 8% 8% 8%
margin(2) Jun-22 (16)% 34% 52% 42% 9% (13)% 8% 3% 32% 7%
(1) Includes a non-cash consideration to Franco-Nevada (Sep-22: R89.298m, Jun-22: R100.071m) under Mine Waste Solutions, excluded from the gold price calculation.
(2) Excludes run of mine costs for Kalgold (Sep-22: R4.632m, Jun-22: -R0.774m) and Hidden Valley (Sep-22: R107.114m, Jun-22: -R56.240m).
(3) Bambanani operation closed in June 2022.
DIRECTORATE AND ADMINISTRATION
HARMONY GOLD MINING COMPANY LIMITED
Harmony Gold Mining Company Limited was
incorporated and registered as a public company in
South Africa on 25 August 1950
Registration number: 1950/038232/06
CORPORATE OFFICE
Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: http://www.harmony.co.za
DIRECTORS
Dr PT Motsepe* (chairman), KT Nondumo*^
(deputy chairman), M Msimang*^ (lead
independent director), PW Steenkamp
(chief executive officer), BP Lekubo (financial
director), HE Mashego (executive director)
JA Chissano*^#, B Nqwababa*^, VP Pillay*^,
MJL Prinsloo*^, GR Sibiya*^, PL Turner*^,
JL Wetton*^, AJ Wilkens*
* Non-executive
^ Independent
# Mozambican
COMPANY SECRETARY
SS Mohatla
E-mail queries: companysecretariat@harmony.co.za
Telephone: +27 11 411 2359
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 6073 or +27 82 746 4120
TRANSFER SECRETARIES
JSE Investor Services (Proprietary) Limited
(Registration number 2000/007239/07)
19 Ameshoff Street, 13th Floor, Hollard House,
Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
E-mail: info@jseinvestorservices.co.za
Fax: +27 86 674 4381
AMERICAN DEPOSITARY RECEIPTS DEPOSITARY
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and
Trust Company
Operations Centre, 6201 15th Avenue, Brooklyn,
NY 11219, United States
E-mail queries: db@astfinancial.com
Toll free (within the US): +1 886 249 2593
Int: +1 718 921 8137
Fax: +1 718 921 8334
SPONSOR
JP Morgan Equities South Africa Proprietary Limited
1 Fricker Road, corner Hurlingham Road, Illovo,
Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
TRADING SYMBOLS
ISIN: ZAE000015228
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 2022, are available on our website
(http://www.harmony.co.za/invest).
FORWARD-LOOKING STATEMENTS
This booklet contains forward-looking statements within the meaning of the safe harbour 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 booklet, and including any climate change-related statements, targets and metrics, are necessarily estimates reflecting
the best judgement 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 our integrated
annual 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; the impact from, and measures taken to address, Covid-19 and other
contagious diseases, such as HIV and tuberculosis; rising inflation, supply chain issues, volatile commodity costs and
other inflationary pressures exacerbated by the Russian invasion of Ukraine and subsequent sanctions; 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
gold and other metals prices; estimates of provision for silicosis settlement; increasing regulation of environmental and
sustainability matters such as greenhouse gas emission and climate change, and the impact of climate change on our
operations; estimates of future tax liabilities under the Carbon Tax Act; statements regarding future debt repayments;
estimates of future capital expenditures; the success of our business strategy, exploration and 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 labour disruptions related to industrial action or
health and safety incidents; 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;
our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our ability to achieve
sufficient representation of historically disadvantaged persons in management positions or sufficient gender diversity
in management positions or at Board level; our ability to comply with requirements that we operate in a sustainable
manner and provide benefits to affected communities; potential liabilities related to occupational health diseases; changes
in government regulation and the political environment, particularly tax and royalties, mining rights, health, safety,
environmental regulation and business ownership including any interpretation thereof; court decisions affecting the mining
industry, including, without limitation, regarding the interpretation of mining rights; our ability to protect our information
technology and communication systems and the personal data we retain; risks related to the failure of internal controls;
the outcome of pending or future litigation or regulatory proceedings; fluctuations in exchange rates and currency
devaluations and other macroeconomic monetary policies; the adequacy of the Group's insurance coverage; any further
downgrade of South Africa's credit rating; and socio-economic or political instability in South Africa, Papua New Guinea
and other countries in which we operate.
These forward-looking statements speak only as of the date they are made. The foregoing factors and others described
under “Risk Factors” in our Integrated Annual Report (http://www.har.co.za) and our Form 20F should not be construed as
exhaustive. We undertake 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. All subsequent written or oral forward-looking statements attributable to Harmony or any
person acting on its behalf are qualified by the cautionary statements herein.
These forward-looking statements are the responsibility of the directors and have not been reviewed and reported on by
the Company's external auditors.
Johannesburg
17 November 2022
Date: 17-11-2022 10:00:00
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