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Trading statement and operating update for the six months ended 31 December 2023
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")
Trading statement and operating update for the six months ended
31 December 2023
Johannesburg, Thursday, 22 February 2024. 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 next period to be reported upon - being its
interim results for the six months ended 31 December 2023 ("H1FY24") -
will differ by at least 20% from the financial results for the comparable
six months ended 31 December 2022 ("the previous comparable period" or
"H1FY23").
"The stellar H1FY24 results are a result of our ongoing investment in
safety, higher quality ounces, a stable and predictable cost structure
and operational excellence across the entire group. This has placed us
in a very good position to take advantage of the strong gold price and
generate excellent operating free cash flows. We will continue using our
wealth of experience and specialised skills to convert our significant
Mineral Resources to Mineral Reserves as we create long-term value for
all," says Peter Steenkamp, CEO.
Expected basic and headline earnings for H1FY24
Shareholders of Harmony are advised that a reasonable degree of certainty
exists that basic earnings for H1FY24 will be higher than for H1FY23
primarily due to an increased gross profit as a result of:
• higher recovered grades
• an increase in gold production
• a higher average gold price received
In addition, an increase in the production of silver and uranium at the
Hidden Valley and Moab Khotsong operations respectively, coupled with a
meaningful increase in the average prices received for both commodities
also contributed to a better performance.
The increase in earnings was partially offset by the following:
• an increase in production costs due to inflationary increases in labour
and electricity costs as planned, and higher royalty taxes driven by
an increase in revenue and profitability
• an increase in amortisation and depreciation as a result of higher
depreciation recognised for Hidden Valley's stripping activities
• additional exploration expenditure incurred for the execution of an
updated feasibility study of the Eva Copper project
• an increase in the current taxation due to higher taxable income
resulting from favourable gold prices and an increase in gold sold
Consequently, earnings per share ("EPS") are expected to be between 937
and 976 South African cents per share, which is an increase of more than
100% on the EPS of 298 South African cents per share for the previous
comparable period. In United States ("US") dollar terms, the EPS are
expected to be between 50 and 52 US cents per share, which is an increase
of more than 100% on the EPS of 17 US cents per share reported for the
previous comparable period.
Headline earnings per share ("HEPS") are expected to be between 937 and
976 South African cents, which represents an increase of more than 100%
from the HEPS of 293 South African cents reported in the previous
comparable period. In US dollar terms, the HEPS are expected to be
between 50 and 52 US cents per share, which is an increase of more than
100% on the headline earnings of 17 US cents per share reported for the
previous comparable period.
Harmony will publish its financial results for the six months ended
31 December 2023 on Wednesday, 28 February 2024. Please see Harmony's
website for more details: www.harmony.co.za.
The financial information on which this trading statement is based has
not been reviewed or reported on by Harmony's external auditors.
For more details, contact:
Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120
Johannesburg, South Africa
22 February 2024
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
FORWARD-LOOKING STATEMENTS
This market release 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 market release, 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 this market release.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and should be
considered in light of various important factors, including those set
forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements. 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;
high and 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 (South Africa);
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 and other
metals; 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; ageing
infrastructure, unplanned breakdowns and stoppages that may delay
production, increase costs and industrial accidents; 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; our ability to meet
our environmental, social and corporate governance targets; the outcome
of pending or future litigation or regulatory proceedings; fluctuations
in exchange rates and currency devaluations and other macroeconomic
monetary policies, as well as the impact of South African exchange
control regulations; 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, Australia and
other countries in which we operate; changes in technical and economic
assumptions underlying our mineral reserves estimates; geotechnical
challenges due to the ageing of certain mines and a trend toward mining
deeper pits and more complex, often deeper underground, deposits; and
actual or alleged breach or breaches in governance processes, fraud,
bribery or corruption at our operations that leads to censure, penalties
or negative reputational impacts.
The foregoing factors and others described under "Risk Factors" in our
Integrated Annual Report (www.har.co.za) and our Form 20-F 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 market release 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.
Date: 22-02-2024 10:03:00
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