HARMONY GOLD MINING COMPANY LIMITED - Operating overview and trading statement for the six months ended 31 December 2018

Operating overview and trading statement for the six months ended 31 December 2018

Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(“Harmony” and/or “the Company”)

Operating overview and trading statement for the six months ended
31 December 2018

Johannesburg, Friday, 8 February 2019. Harmony Gold Mining Company
Limited (“Harmony” or the “Company”) announces an update on its operating
results and provides a trading statement relating to its interim results
for the six months ended 31 December 2018 (“H1FY19”).

Overview of H1FY19 operating performance

Harmony’s investments in Hidden Valley and Moab Khotsong have boosted
production and contributed significantly to the group’s operational free
cash flow.

Gold production for the group was 751 000oz for the six months ended
31 December 2018, a 34% increase compared to the six months ended 31
December 2017.

All-in sustaining costs for the group increased by 6% to R528 265/kg for
the six months ended 31 December 2018, compared to R500 248/kg for the
six months ended 31 December 2017.

Headline and basic earnings

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE
Limited (JSE), a company listed on the JSE is required to publish a
trading statement as soon as they are satisfied that a reasonable degree
of certainty exists that the financial results for the period to be
reported upon next will differ by at least 20% from the financial results
for the previous corresponding period.

Shareholders of Harmony are advised that a reasonable degree of certainty
exists that earnings for the six months ended 31 December 2018 (“H1FY19”)
will be lower than for the corresponding six months ended 31 December
2017 (“the previous comparable period” or “H1FY18”) primarily due to:

  a) an increase in amortisation and depreciation for the Hidden Valley
  operation as a result of the mine reaching commercial levels of
  production in June 2018;
  b) a reported translation loss on the US$ denominated debt at 31
  December 2018; and
  c) lower derivative gains recorded in H1FY19.




                                    1
Headline earnings per share (“HEPS”) are expected to be between 7 and
29 South African cents – a decrease of approximately 87% to 97% reported
for the previous comparable period (which was 224 South African cents).
In US dollar terms, HEPS are expected to be between 1 and 3 US cents per
share, which is between 83% to 97% lower than the headline earnings of
15 US cents per share reported for the previous comparable period.

Earnings per share (“EPS”) are expected to decrease to between 6 and 26
South African cents per share, which is between 87% and 97% lower than
the 203 South African cents per share reported for the previous
comparable period. In US dollar terms, the earnings per share is expected
to be between 0 and 3 US cents per share, which is between 83% and 97%
lower than the earnings of 15 US cents per share reported for the previous
comparable period.

a)   Amortisation and depreciation

A depreciation charge (non-cash) of R915 million (US$65 million) was
recorded for Hidden Valley for the six months ended 31 December 2018
(compared to R19 million (US$1 million) for the six months ended
31 December 2017). Hidden Valley reached commercial levels of production
in June 2018.

b)   Translation loss

A translation loss of R180 million was recognised on the US$ denominated
debt as at 31 December 2018, compared to a translation gain of
R196 million recorded in the previous comparable period.

c)   Lower derivative gains

Included in H1FY19 were derivative gains of R20 million (US$1 million)
compared to R337 million (US$25 million) in H1FY18.

The financial information on which this trading statement has been based
has not been reviewed or reported on by Harmony’s external auditors.

Harmony will publish its interim financial results for the six months
ended 31 December 2018 on Tuesday, 12 February 2019.



For more details contact:

Lauren Fourie
Investor Relations Manager
+27(0)71 607 1498 (mobile)


Marian van der Walt
Executive: Investor Relations
+27(0)82 888 1242 (mobile)

                                     2
Johannesburg, South Africa
8 February 2019


Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited




                                   3

Date: 08/02/2019 08:34:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.