Wrap Text
Production results for the three months ended 30 September 2016
Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
Q1 FY17
PRODUCTION RESULTS
FOR THE THREE MONTHS ENDED
30 SEPTEMBER 2016
KEY FEATURES - QUARTER ON QUARTER
- Received numerous industry safety awards at 2016 MineSAFE ceremony
- 10% increase in gold production
- Production profit of R1.4 billion (US$97 million)
- R850 million (US$60 million) free operational cash flow
- 51% decrease in net debt from R1 083 million to R528 million
(49% decrease from US$74 million to US$38 million)
- R5.25 billion recorded in revenue - highest ever (US$374 million)
- Currency and gold hedges realise R240 million (US$17 million) in profits
- Acquired full ownership of Hidden Valley in PNG
September 2016 quarter June 2016 quarter Q-on-Q variance %
Gold produced kg 8 630 7 880 10
oz 277 461 253 349 10
Underground grade g/t 5.01 4.75 5
Gold price received R/kg 605 224 608 316 (1)
US$/oz 1 339 1 262 6
Cash operating costs R/kg 448 117 437 925 (2)
US$/oz 991 909 (9)
Total costs and capital R/kg 515 776 512 829 (1)
US$/oz 1 141 1 064 (7)
All-in sustaining costs R/kg 516 116 521 738 1
US$/oz 1 142 1 083 (5)
Production profit R million 1 369 1 357 1
US$ million 97 91 7
Cash operating margin % 16 17
Exchange rate R/US$ 14.06 14.99 (6)
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
1. OVERVIEW
We had a very good start to the new financial year, with increased production, even stronger cash flows and a quarter in which we returned
money to shareholders by way of a dividend.
In support of our strategy to grow and improve the quality of our gold ounces, we acquired the other half of the Hidden Valley mine in Papua
New Guinea (PNG) and submitted the special mining lease application in support of the Golpu project.
We recorded our highest ever quarterly revenue of R5.25 billion, a 9% increase quarter on quarter (16% increase to US$374 million).
The operations generated positive free cash flow of R850 million (US$60 million), allowing us to reduce net debt by 51% from R1 083 million
to R528 million (reduced by 49% from US$74 million to US$38 million), after paying a dividend of R218 million (US$16 million).
2. SAFETY AND HEALTH
We are committed to creating a culture where safety and health is our first priority. Despite our combined efforts, two of our colleagues tragically
lost their lives in mine related accidents.
The causes of all accidents are investigated and analysed thoroughly by our own safety personnel in conjunction with the authorities and
employee representatives, and lessons learned are rigorously applied.
We will persist with our safety training and awareness campaigns to ensure a safe working place.
As regards occupational lung diseases, the Silicosis Working Group, initiated by the gold mining companies, continues to work on a sustainable,
all-inclusive and comprehensive solution for the current and legacy dilemmas. See www.oldcollab.co.za for more information.
During the quarter, three of Harmony's operating units - the Asset Management Forum, Kusasalethu and Kalgold - received awards for second,
third and fourth places respectively in the Best Improved Safety Performance category at the 2016 MineSAFE awards ceremony. Another three
business units - Joel, Bambanani, and Kalgold - came second, third and fourth respectively in the Best Safety Performance category. In addition,
our health hubs healthcare model was awarded third place in the Medical/Wellness category.
3. OPERATIONAL RESULTS
Quarter on quarter gold production increased by 10% to 8 630kg compared to 7 880kg in the previous quarter. When comparing actual performance
against planned performance, our operations performed in line with or exceeded their plans, with Target 1 being the only exception.
Underground recovered grade increased by 5.5% quarter on quarter to 5.01g/t. Development grades at all operations - except for Target 1 - are
in line with expectations and support the expected grade in the life-of-mine plan. At Kusasalethu, better than expected grades were intersected
during the quarter.
At Target 1, unstable ground conditions hampered further mining in the higher grade areas. Action plans include an increased focus on development
to ensure that mining flexibility improves. Higher grade is only expected by the third quarter of the financial year.
Cash operating costs for the September 2016 quarter increased by 12% quarter on quarter in Rand terms (19% increase in US dollar terms),
mainly due to an increase in labour costs (bonuses and annual wage increases) and higher electricity costs (winter tariffs).
The all-in sustaining cost for the group remained stable with a 1% decrease to R516 116/kg (5% increase to US$1 142/oz), despite the seasonal
effect of winter electricity tariffs.
4. HEDGING ACTIVITY
Currency hedging
The foreign currency hedging is in the form of zero cost collars, which establish a minimum (floor) and maximum (cap) Rand/US dollar exchange
rate at which to convert US dollars to Rands. The nominal value of the hedging contracts as at 30 September 2016 was US$458 million. The
hedging contracts are spread over a 12 month period, and are summarised as follows:
Q2FY17 Q3FY17 Q4FY17 Q1FY18
Sold call options
Nominal US$125 million US$112 million US$146 million US$75 million
Average strike price R18.57 R18.59 R17.38 R16.37
Lowest strike price R17.93 R17.93 R16.21 R16.21
Highest strike price R19.08 R19.08 R18.28 R16.50
Purchased put options
Nominal US$125 million US$112 million US$146 million US$75 million
Average strike price R15.56 R15.56 R15.47 R15.01
Lowest strike price R15.40 R15.40 R14.85 R14.85
Highest strike price R15.80 R15.80 R16.10 R15.15
During the September 2017 quarter, a gain of R183 million (US$13 million) was realised on the contracts that matured.
Gold hedging
Gold hedging is in the form of short-term gold forward sale contracts with a maximum term of 24 months. The nominal value hedged at
30 September 2016 was 424 000 ounces, representing approximately 20% of our total production. The breakdown of gold forward sale contracts
entered into are as follows:
Q1 Q2 Q3 Q4
FY17 Kgs 1 680 1 680 1 680
Average R/kg R648 871 R660 632 R673 143
FY18 Kgs 1 680 1 680 1 680 1 680
Average R/kg R686 131 R699 540 R712 982 R727 765
FY19 Kgs 1 431
Average R/kg R709 785
During the September 2016 quarter (FY17 Q1), a gain of R57 million (US$4 million) was realised on the contracts that matured.
5. GOLPU
An application for a special mining lease and associated ancillary tenements was lodged with the Mineral Resources Authority on 25 August 2016.
We continue to further research environmentally responsible options for a terrestrial tailings facility, and deep sea tailings placement options.
6. MINERAL AND PETROLEUM RESOURCES DEVELOPMENT BILL AND NEW DRAFT MINING CHARTER
Harmony continues to participate in discussions to influence the final outcome of the legislation applicable to its mining tenure.
7. ACQUISITION OF HIDDEN VALLEY
Harmony continuously investigates opportunities to increase its production and reserves. Its acquisition of Newcrest's 50% share in Hidden Valley
and the surrounding tenement package in PNG is in line with the company's overall aspiration to increase its annual production profile to 1.5Moz
within three years. The transaction became unconditional on 25 October 2016.
The mine has the potential to contribute approximately 180 000oz of gold per annum to Harmony's production profile, at an all-in sustaining cost
of less than US$950/oz once fully recommissioned.
Hidden Valley has an attractive reserve (Au 1.4Moz, Ag 27Moz) with near certain extension within the current open pit resource
(Au 4.9Moz, Ag 73Moz), an established quality management team, a stable workforce and strong community support.
Harmony plans to invest and develop stages 5 and 6 of the mine initially, mining approximately 1.2Moz of gold and 18Moz of silver over
a period of seven years. The capital investment required of up to US$180 million - consisting of mine development, new equipment and
infrastructure - is expected to be completed by the latter half of calendar 2018, after which, the operation will have an all-in sustaining cost
of less than US$950/oz based on current estimates.
With brownfields prospecting in tenements surrounding Hidden Valley, it is possible that production could continue for many more years with new
and potentially small satellite mines delivering their ore to the Hidden Valley processing plant.
Prior to the full acquisition of Hidden Valley, budgets for FY17 had been based on the processing of lower grade stockpiles together with limited ore
from Hamata, to be followed by the operation's entering care and maintenance. Following the acquisition in September 2016, the FY17 budget
for Hidden Valley was revised (applicable from October 2016 onwards) with the following key elements:
- Planned production at steady state of about 180 000oz of gold and 3Moz of silver
- Life-of-mine production of 1.2Moz gold and 18Moz of silver
- Recovered grade of 1.4g/t to 1.5g/t and silver at approximately 20g/t to 23g/t
- Milling rate of about 4Mt per annum
- Mining rate ramps up to 28Mt per annum
- Resume waste stripping at Stage 5
- Investment in additional and replacement mobile fleet
- Process stockpiles and Hamata ore to June 2017 followed by a five-month mill shut down
- Progress maintenance and upgrade projects planned during the shut down
- Recruit personnel to operate and maintain additional fleet trucks
Currently a five-month ore gap is expected from July 2017 to November 2017 in FY18. This ore gap will enable a major plant shutdown for
upgrades and maintenance projects. Reducing this ore gap remains the biggest opportunity to increase our gold ounces at Hidden Valley and is
receiving a high level of attention and management focus.
8. CONCLUSION
Harmony's aspiration is to grow our production to approximately 1.5Moz annually and to increase our profitability within the next three years by:
- growing, nurturing and developing our core assets
- harvesting operations that are high cost and have a short life
- expanding in South Africa, into Africa and in Papua New Guinea
- exploring organic growth opportunities
We understand the significant impact our company has on the lives of people, on the communities that surround our mines, on the environment,
and on the economic well-being of the countries in which we operate. We also understand that we are custodians of shareholders' trust to
optimise their investment in the company. Safe gold production - combined with higher gold prices - means stronger margins.
Our commitment to our stakeholders is to ensure that we meet our safety and production targets. We are off to a good start and intend
maintaining the momentum to achieve in line with our plans. We are well on track to achieve our annual production guidance of 1.05Moz.
SHARE PRICE DATA FOR THE QUARTER ENDED 30 SEPTEMBER 2016
Number of shares in issue: Share price - JSE
- at 30 September 2016 437 479 029 Trading range R66.65 - R45.72
- at 30 June 2016 437 299 479 Average volume traded 2 030 206
Free float 100% ADR price - NYSE
ADR ratio 1:1 Trading range US$4.00 - US$4.50
Bloomberg/Reuters code HAR:SJ/HARJ.J Average volume traded 4 761 490
Market capitalisation
ZAR at 30 September 2016 R21 218m
ZAR at 30 June 2016 R22 945m
US$ at 30 September 2016 US$1 543m
US$ at 30 June 2016 US$1 567m
Harmony Gold Mining Company Limited (Harmony), a world- Our Integrated Annual Report 2016 tells the story of Harmony
class gold mining and exploration company, has operations for our 2016 financial year (FY16) from 1 July 2015 to 30 June
and assets in South Africa and PNG. Harmony, which has more 2016. We aim to show readers what Harmony has done and
than 60 years' experience in the industry, is the third largest achieved, what we plan to do and achieve in the future and
gold producer in South Africa. Our assets include one open pit how we intend to get there. The report reflects on our journey
mine and several exploration tenements in PNG, as well as nine in FY16 - we explain our external and internal environments,
underground mines and one open pit operation and several our strategy and business model, together with our objectives
surface sources in South Africa. In addition, we own 50% of the and how we performed against these. All of our annual reports
significant Golpu project in a joint venture in PNG. are available as pdfs at www.har.co.za, our reporting website,
and can also be accessed via our corporate website,
The company's primary stock exchange listing is on the JSE with www.harmony.co.za.
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.
OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC)
South Africa - underground production
Three
months
ended Tshepong Phakisa Bambanani Joel Doornkop Target 1 Kusasalethu
Sep-16 275 186 63 141 157 193 162
Ore milled - t'000
Jun-16 280 167 49 143 154 199 141
Sep-16 4.65 6.34 12.27 4.97 4.10 2.66 6.92
Yield - g/tonne
Jun-16 4.64 6.10 10.90 4.04 4.25 3.42 6.56
Sep-16 1 278 1 179 773 701 644 514 1 121
Gold produced - kg
Jun-16 1 299 1 019 534 578 654 681 925
Sep-16 1 275 1 176 771 730 663 481 1 146
Gold sold - kg
Jun-16 1 300 1 020 535 550 667 677 914
Sep-16 604 205 604 440 605 070 604 422 608 148 607 507 607 729
Gold price received - R/kg
Jun-16 608 495 609 494 609 436 610 773 608 934 607 437 607 037
Sep-16 770 361 710 822 466 509 441 228 403 202 292 211 696 457
Revenue (R'000)
Jun-16 791 043 621 684 326 048 335 925 406 159 411 235 554 832
Sep-16 554 114 455 655 234 863 254 126 305 621 348 099 543 436
Cash operating cost (R'000)
Jun-16 503 920 371 642 204 199 225 747 277 620 331 121 481 663
Sep-16 734 (1 172) (2 151) 14 230 4 342 (18 169) 13 616
Inventory movement (R'000)
Jun-16 (849) (710) 1 585 (11 478) (856) (4 117) (12 447)
Sep-16 554 848 454 483 232 712 268 356 309 963 329 930 557 052
Operating costs (R'000)
Jun-16 503 071 370 932 205 784 214 269 276 764 327 004 469 216
Sep-16 215 513 256 339 233 797 172 872 93 239 (37 719) 139 405
Production profit (R'000)
Jun-16 287 972 250 752 120 264 121 656 129 395 84 231 85 616
Sep-16 97 629 78 340 20 652 57 540 46 928 72 825 70 952
Capital expenditure (R'000)
Jun-16 89 822 87 584 29 251 51 134 57 014 79 588 104 982
Sep-16 433 579 386 476 303 833 362 519 474 567 677 235 484 778
Cash operating costs - R/kg
Jun-16 387 929 364 712 382 395 390 566 424 495 486 228 520 717
Sep-16 2 015 2 450 3 728 1 802 1 947 1 804 3 355
Cash operating costs - R/tonne
Jun-16 1 800 2 225 4 167 1 579 1 803 1 664 3 416
Cash operating cost Sep-16 509 971 452 922 330 550 444 602 547 436 818 918 548 071
- R/kg
and capital Jun-16 457 076 450 663 437 172 479 033 511 673 603 097 634 211
Operational free cash Sep-16 15% 25% 45% 29% 13% -44% 12%
%
flow margin(1) Jun-16 25% 26% 28% 18% 18% 0% -6%
(1)Excludes run-of-mine costs for Kalgold (September 2016: -R1.384m; June 2016: -R0.146m) and Hidden Valley (September 2016: R48.714m;
June 2016: R11.781m)
South Africa - surface production Papua New
Guinea
Total Total Hidden Total
Masimong Unisel Underground Phoenix Dumps Kalgold Total Surface South Africa Valley Harmony
176 113 1 466 1 695 761 389 2 845 4 311 473 4 784
167 102 1 402 1 571 796 390 2 757 4 159 454 4 613
3.58 4.51 5.01 0.14 0.32 0.85 0.28 1.89 1.00 1.80
3.54 3.64 4.75 0.13 0.31 0.78 0.27 1.78 1.05 1.71
630 510 7 350 238 242 329 809 8 159 471 8 630
592 371 6 653 197 250 305 752 7 405 475 7 880
628 508 7 378 246 241 338 825 8 203 478 8 681
593 371 6 627 195 255 332 782 7 409 528 7 937
604 443 604 974 605 544 601 171 608 336 605 388 604 992 605 489 600 686 605 224
607 811 608 377 608 581 608 297 607 259 607 599 607 662 608 484 605 955 608 316
379 590 307 327 4 467 707 147 888 146 609 204 621 499 118 4 966 825 287 128 5 253 953
360 432 225 708 4 033 066 118 618 154 851 201 723 475 192 4 508 258 319 944 4 828 202
296 560 219 991 3 212 465 95 236 118 288 150 339 363 863 3 576 328 290 919 3 867 247
279 081 195 643 2 870 636 85 333 113 632 143 520 342 485 3 213 121 237 725 3 450 846
(130) (1 221) 10 079 4 754 1 393 4 778 10 925 21 004 (2 965) 18 039
(849) 266 (29 455) (2 321) 2 469 19 199 19 347 (10 108) 29 882 19 774
296 430 218 770 3 222 544 99 990 119 681 155 117 374 788 3 597 332 287 954 3 885 286
278 232 195 909 2 841 181 83 012 116 101 162 719 361 832 3 203 013 267 607 3 470 620
83 160 88 557 1 245 163 47 898 26 928 49 504 124 330 1 369 493 (826) 1 368 667
82 200 29 799 1 191 885 35 606 38 750 39 004 113 360 1 305 245 52 337 1 357 582
26 274 16 965 488 105 2 479 52 835 17 016 72 330 560 435 23 468 583 903
32 081 16 721 548 177 3 068 13 021 7 588 23 677 571 854 18 389 590 243
470 730 431 355 437 070 400 151 488 793 456 957 449 769 438 329 617 662 448 117
471 421 527 340 431 480 433 162 454 528 470 557 455 432 433 912 500 474 437 925
1 685 1 947 2 191 56 155 386 128 830 615 808
1 671 1 918 2 048 54 143 368 124 773 524 748
512 435 464 620 503 479 410 567 707 120 508 678 539 176 507 018 667 488 515 776
525 611 572 410 513 875 448 736 506 612 495 436 486 918 511 138 539 187 512 829
15% 23% 17% 34% -17% 18% 12% 17% 7% 16%
14% 6% 15% 25% 18% 25% 23% 16% 24% 17%
OPERATING RESULTS - QUARTER ON QUARTER (US$/IMPERIAL)
South Africa - underground production
Three
months
ended Tshepong Phakisa Bambanani Joel Doornkop Target 1 Kusasalethu
Sep-16 303 205 69 155 173 213 179
Ore milled - t'000
Jun-16 309 184 54 158 170 219 155
Sep-16 0.136 0.185 0.360 0.145 0.120 0.078 0.201
Yield - oz/tonne
Jun-16 0.135 0.178 0.318 0.118 0.124 0.100 0.192
Sep-16 41 089 37 906 24 852 22 538 20 705 16 525 36 041
Gold produced - oz
Jun-16 41 764 32 762 17 168 18 583 21 027 21 895 29 739
Sep-16 40 992 37 809 24 788 23 470 21 316 15 464 36 845
Gold sold - oz
Jun-16 41 796 32 794 17 201 17 683 21 445 21 766 29 386
Sep-16 1 336 1 337 1 338 1 337 1 345 1 344 1 344
Gold price received - $/oz
Jun-16 1 263 1 265 1 265 1 267 1 264 1 260 1 260
Sep-16 54 781 50 547 33 174 31 376 28 672 20 779 49 526
Revenue ($'000)
Jun-16 52 775 41 476 21 752 22 411 27 097 27 436 37 016
Sep-16 39 404 32 402 16 702 18 071 21 733 24 754 38 644
Cash operating cost ($'000)
Jun-16 33 620 24 794 13 623 15 060 18 522 22 091 32 134
Sep-16 52 (83) (153) 1 012 309 (1 292) 968
Inventory movement ($'000)
Jun-16 (57) (47) 106 (766) (57) (275) (830)
Sep-16 39 456 32 319 16 549 19 083 22 042 23 462 39 612
Operating costs ($'000)
Jun-16 33 563 24 747 13 729 14 294 18 465 21 816 31 304
Sep-16 15 325 18 228 16 625 12 293 6 630 (2 683) 9 914
Production profit ($'000)
Jun-16 19 212 16 729 8 023 8 117 8 632 5 620 5 712
Sep-16 6 942 5 570 1 469 4 092 3 337 5 178 5 045
Capital expenditure ($'000)
Jun-16 5 991 5 843 1 952 3 411 3 804 5 309 7 004
Sep-16 959 855 672 802 1 050 1 498 1 072
Cash operating costs - $/oz
Jun-16 805 757 794 810 881 1 009 1 081
Sep-16 130 158 242 117 126 116 216
Cash operating costs - $/tonne
Jun-16 109 135 252 95 109 101 207
Cash operating cost Sep-16 1 128 1 002 731 983 1 211 1 811 1 212
- $/oz
and capital Jun-16 948 935 907 994 1 062 1 251 1 316
Operational free cash Sep-16 15% 25% 45% 29% 13% -44% 12%
%
flow margin(1) Jun-16 25% 26% 28% 18% 18% 0% -6%
(1)Excludes run-of-mine costs for Kalgold (September 2016: -US$0.98m; June 2016: -US$0.10m) and Hidden Valley (September 2016: US$3. 464m; June 2016: US$0.786m)
South Africa - surface production Papua New
Guinea
Total Total Hidden Total
Masimong Unisel Underground Phoenix Dumps Kalgold Total Surface South Africa Valley Harmony
194 125 1 616 1 869 839 429 3 137 4 753 522 5 275
184 112 1 545 1 732 878 430 3 040 4 585 501 5 086
0.104 0.131 0.146 0.004 0.009 0.025 0.008 0.055 0.029 0.053
0.103 0.107 0.138 0.004 0.009 0.023 0.008 0.052 0.030 0.050
20 255 16 397 236 308 7 652 7 780 10 578 26 010 262 318 15 143 277 461
19 033 11 928 213 899 6 334 8 038 9 806 24 178 238 077 15 272 253 349
20 191 16 333 237 208 7 909 7 748 10 867 26 524 263 732 15 368 279 100
19 065 11 928 213 064 6 269 8 198 10 674 25 141 238 205 16 976 255 181
1 337 1 338 1 339 1 330 1 346 1 339 1 338 1 339 1 329 1 339
1 261 1 262 1 263 1 262 1 260 1 261 1 261 1 263 1 257 1 262
26 993 21 854 317 702 10 516 10 426 14 551 35 493 353 195 20 418 373 613
24 046 15 058 269 067 7 914 10 331 13 458 31 703 300 770 21 345 322 115
21 089 15 644 228 443 6 772 8 411 10 691 25 874 254 317 20 687 275 004
18 619 13 052 191 515 5 693 7 581 9 575 22 849 214 364 15 860 230 224
(9) (87) 717 338 99 340 777 1 494 (211) 1 283
(57) 18 (1 965) (155) 165 1 281 1 291 (674) 1 994 1 320
21 080 15 557 229 160 7 110 8 510 11 031 26 651 255 811 20 476 276 287
18 562 13 070 189 550 5 538 7 746 10 856 24 140 213 690 17 854 231 544
5 913 6 297 88 542 3 406 1 916 3 520 8 842 97 384 (58) 97 326
5 484 1 988 79 517 2 376 2 585 2 602 7 563 87 080 3 491 90 571
1 869 1 206 34 708 177 3 757 1 210 5 144 39 852 1 669 41 521
2 141 1 115 36 570 205 869 507 1 581 38 151 1 227 39 378
1 041 954 967 885 1 081 1 011 995 969 1 366 991
978 1 094 895 899 943 976 945 900 1 039 909
109 125 141 4 10 25 8 54 40 52
101 117 124 3 9 22 8 47 32 45
1 133 1 028 1 114 908 1 564 1 125 1 193 1 121 1 476 1 141
1 091 1 188 1 066 931 1 051 1 028 1 010 1 061 1 119 1 064
15% 23% 17% 34% -17% 18% 12% 17% 7% 16%
14% 6% 15% 25% 18% 25% 23% 16% 24% 17%
10 NOVEMBER 2016
DIRECTORATE AND ADMINISTRATION
HARMONY GOLD MINING COMPANY LIMITED INVESTOR RELATIONS ADR* DEPOSITARY
Harmony Gold Mining Company Limited ("Harmony" Email: harmonyIR@harmony.co.za Deutsche Bank Trust Company Americas c/o American
or "Company") was incorporated and registered as a Stock Transfer and Trust Company
public company in South Africa on 25 August 1950 Marian van der Walt Peck Slip Station
Executive: Corporate and Investor Relations PO Box 2050
Registration number: 1950/038232/06 Telephone: +27 11 411 2037 New York, NY 10272-2050
Fax: +27 86 614 0999 E-mail queries: db@amstock.com
Corporate office Mobile: +27 82 888 1242
Randfontein Office Park E-mail: marian@harmony.co.za Toll free: +1-800-937-5449
PO Box 2, Randfontein, 1760 Int: +1-718-921-8137
South Africa COMPANY SECRETARY Fax: +1-718-765-8782
Corner Main Reef Road and Ward Avenue Riana Bisschoff
Randfontein, 1759 *ADR: American Depositary Receipts
South Africa Telephone: +27 11 411 6020
Fax: +27 11 696 9734 SPONSOR
Telephone: +27 11 411 2000 Mobile: +27 83 629 4706 JP Morgan Equities South Africa (Pty) Ltd
Website: www.harmony.co.za E-mail: riana.bisschoff@harmony.co.za 1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
DIRECTORS TRANSFER SECRETARIES Private Bag X9936, Sandton, 2146
PT Motsepe* (chairman) Link Market Services South Africa Telephone: +27 11 507 0300
FFT De Buck*^ (lead independent director) Fax: +27 11 507 0503
JM Motloba*^ (deputy chairman) (Proprietary) Limited TRADING SYMBOLS
PW Steenkamp (chief executive officer) (Registration number 2000/007239/07) JSE Limited: HAR
F Abbott (financial director) 13th Floor, Rennie House, New York Stock Exchange, Inc.: HMY
JA Chissano*1^ Ameshoff Street, Braamfontein Berlin Stock Exchange: HAM1
KV Dicks*^ PO Box 4844 ISIN: ZAE 000015228
Dr DSS Lushaba*^ Johannesburg, 2000
CE Markus*^ South Africa
HE Mashego** Telephone: +27 86 154 6572
M Msimang*^ E-mail: info@linkmarketservices.co.za
KT Nondumo*^ Fax: +27 86 674 2450
VP Pillay*^
JL Wetton*^
AJ Wilkens*
* Non-executive
** Executive
^ Independent
(1) Mozambican
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended, 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 include all statements other than
statements of historical fact, including, without limitation, any statements proceeded by, followed by, or that include the words "targets", "believes", "expects", "aims"
"intends" "will", "may", "anticipates", "would", "should", "could", "estimates", "forecast", "predict", "continue" or similar expressions or the negative thereof.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report
and the exhibits to this report, are essentially 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 the 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, statements regarding future debt
repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, 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, fluctuations in the market price of gold, the occurrence of hazards associated with underground and surface gold mining, the occurrence of labour disruptions,
power cost increases as well as power stoppages, fluctuations and usage constraints, supply chain shortages and increases in the prices of production imports, availability,
terms and deployment of capital, changes in government regulation, particularly mining rights and environmental regulation, fluctuations in exchange rates, the adequacy
of the group's insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea 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
on 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 annual
report or to reflect the occurrence of unanticipated events, except as required by law.
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