Wrap Text
Financial results for the six-month period ended 31 December 2023 - short-form announcement
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)
FINANCIAL RESULTS FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2023 –
SHORT-FORM ANNOUNCEMENT
Harmony delivers an outstanding half-year operational performance with
strong cash flows; declares record interim dividend; Mponeng extension
approved
Johannesburg. Wednesday, 28 February 2024. Harmony Gold Mining Company
Limited is pleased to announce its financial and operating results
for the six-month period ended 31 December 2023 ("H1FY24").
"Harmony delivered an exceptional set of results in H1FY24. We have
again demonstrated that Harmony is an excellent operator and a global
gold mining leader, with a copper footprint. Through resilience,
dedication and focus, we are improving our safety performance, driving
operational excellence, increasing the quality of our ounces and
delivering as promised. We have built a solid foundation that will
enable Harmony to continue on this upwards trajectory. While strong
commodity prices have provided Harmony with good tailwinds, improved
safety, good mining discipline and operational flexibility with a
stable and a predictable cost structure, remain fundamental to
creating the long-term value expected by our stakeholders. We will
continue to use our skills and strong understanding of our orebodies
to extract further value – wherever we operate. We mine with purpose
– transforming our gold into long-term value for all our
stakeholders." Said Peter Steenkamp, chief executive officer of
Harmony.
Key highlights of H1FY24 are:
- Safety continues to improve with group LTIFR at 5.19, from 5.38
per million hours worked
- 226% increase in headline earnings per share (HEPS) to 956 SA
cents (51 US cents) per share from 293 SA cents (17 US cents) per
share
- Earnings per share (EPS) increased by 221% to earnings of 956 SA
cents per share (51 US cents) from a comparative EPS of 298 SA
cents (17 US cents) per share
- Record operating free cash flow, up 265% to R7 112 million (US$381
million) driven by operational excellence and higher recovered
grades
- A record interim dividend declared of 147 SA cents (approximately
7.61 US cents) per share (December 2022: nil)
- 11% increase in underground recovered grades to 6.29g/t from
5.68g/t
- 5% decrease in group all-in sustaining costs (AISC) to R843 043/kg
(US$1 403/oz) from R890 048/kg (US$1 598/oz)
- 35% increase in group revenue to R31 415 million (US$1
681 million) from R23 259 million (US$1 343 million)
- 14% increase in total gold production to 25 889kg (832 349oz)
from 22 809kg (733 325oz)
- 30% increase in production from Mponeng as a result of improved
underground recovered grades
- Mponeng extension project approved, extending mine life from 7 to
20 years and increasing margins
- Hidden Valley generated operating free cash flow of R1 769 million
(US$95 million), due to excellent recovered grades, compared to
-R69 million (-US$4 million)
- 18% increase in average gold price received to R1 141 424/kg
(US$1 900/oz) from R963 464/kg (US$1 730/oz)
- Strong, flexible balance sheet now in a net cash position of R74
million (US$4 million)
- FY24 production, grade, cost and capital guidance remains
unchanged
OPERATING RESULTS
Six months Six months
ended ended
31 December 31 December %
2023 2022 Change
Underground recovered
grade g/t 6.29 5.68 11
R/kg 1 141 424 963 464 18
Gold price received
US$/ 1 900 1 730 10
oz
kg 25 889 22 809 14
Gold produced total
oz 832 349 733 325 14
SA high-grade kg 8 045 6 631 21
underground oz 258 652 213 191 21
SA optimized kg 10 307 10 548 (2)
underground oz 331 378 339 125 (2)
kg 4 526 3 647 24
SA surface operations
oz 145 514 117 254 24
International (Hidden kg 3 011 1 983 52
Valley) oz 96 805 63 755 52
Group cash operating R/kg 715 617 738 788 3
costs US$/ 1 191 1 327 10
Group all-in oz
R/kg 843 043 890 048 5
sustaining costs US$/ 1 403 1 598 12
Group
(AISC)all-in cost oz
R/kg 903 619 931 736 3
(AIC) US$/ 1 504 1 673 10
Group operating free oz
R 7 112 1 949 265
cash flow US$
mill 381 113 237
Average exchange rate mill
R:US
ion 18.68 17.32 8
ion
$
FINANCIAL RESULTS
Six months Six months
ended ended
31 December 31 December %
2023 2022 Change
SA cents 956
(Reviewed) 298
(Reviewed) 221
Basic EPS
US cents 51 17 200
R 228
million 5 919 1 804
Headline earnings
US$ 205
million 317 104
SA cents 956 293 226
HEPS
US cents 51 17 200
FY24 group production and cost guidance
FY24 production guidance for the group remains unchanged at between 1
380 000 ounces to 1 480 000 ounces. FY24 AISC guidance also remains
unchanged at less than R975 000/kg. Underground grade guidance remains
unchanged at 5.60g/t to 5.75g/t. We anticipate annual production and
grade to be at the upper end of guidance, while costs will remain well
below the guided level.
Notice of Interim Gross Cash Dividend
Our dividend declaration for the six months ended 31 December 2023 is
as follows:
Declaration of interim gross cash ordinary dividend no. 94
The Board has approved, and notice is hereby given, that a interim
gross cash dividend of 147 SA cents (7.61264 US cents*) per ordinary
share in respect of the six months ended 31 December 2023, has been
declared payable to the registered shareholders of Harmony on Monday,
15 April 2024.
In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the
JSE Listings Requirements the following additional information is
disclosed:
• The dividend has been declared out of income reserves;
• The local Dividend Withholding Tax rate is 20%;
• The gross local dividend amount is 147.00000 SA cents (7.61264 US
cents*) per ordinary share for shareholders exempt from the
Dividend Withholding Tax;
• The net local dividend amount is 117.60000 SA cents per ordinary
share for shareholders liable to pay the Dividend Withholding Tax;
• Harmony currently has 619 982 888 ordinary shares in issue (which
includes 47 381 treasury shares); and
• Harmony's income tax reference number is 9240/012/60/0.
A dividend No. 94 of 147.00000 SA cents (7.61264 US cents*) per
ordinary share, being the dividend for the six months ended 31 December
2023, has been declared payable on Monday, 15 April 2024 to those
shareholders recorded in the share register of the company at the
close of business on Friday, 12 April 2024. The dividend is declared
in the currency of the Republic of South Africa. Any change in address
or dividend instruction to apply to this dividend must be received by
the company's transfer secretaries or registrar not later than Friday,
5 April 2024.
Dividends received by non-resident shareholders will be exempt from
income tax in terms of section 10(1)(k)(i) of the Income Tax Act. The
dividends withholding tax rate is 20%, accordingly, any dividend will
be subject to dividend withholding tax levied at a rate of 20%, unless
the rate is reduced in terms of any applicable agreement for the
avoidance of double taxation (DTA) between South Africa and the
country of residence of the shareholder.
Should dividend withholding tax be withheld at a rate of 20%, the net
dividend amount due to non-resident shareholders is 117.60000 SA cents
per share. A reduced dividend withholding rate in terms of the
applicable DTA may only be relied on if the non-resident shareholder
has provided the following forms to their CSDP or broker, as the case
may be in respect of uncertificated shares or the company, in respect
of certificated shares:
(a) a declaration that the dividend is subject to a reduced rate as
a result of the application of a DTA; and
(b) a written undertaking to inform the CSDP or broker, as the case
may be, should the circumstances affecting the reduced rate change
or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African
Revenue Service. Non-resident shareholders are advised to contact
their CSDP or broker, as the case may be, to arrange for the
abovementioned documents to be submitted prior to the payment of the
distribution if such documents have not already been submitted.
In compliance with the requirements of Strate Proprietary Limited
(Strate) and the JSE Listings Requirements, the salient dates for
payment of the dividend are as follows:
Last date to trade ordinary shares Tuesday, 9 April 2024
cum-dividend is
Ordinary shares trade ex-dividend Wednesday, 10 April 2024
Record date Friday, 12 April 2024
Payment date Monday, 15 April 2024
No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 10 April 2024 and Friday, 12 April 2024 both
dates inclusive, nor may any transfers between registers take place
during this period.
On payment date, dividends due to holders of certificated securities
on the SA share register will either be electronically transferred to
such shareholders' bank accounts or, in the absence of suitable
mandates, dividends will be held in escrow by Harmony until suitable
mandates are received to electronically transfer dividends to such
shareholders.
Dividends in respect of dematerialised shareholdings will be credited
to such shareholders' accounts with the relevant Central Securities
Depository Participant (CSDP) or broker.
The holders of American Depositary Receipts (ADRs) should confirm
dividend details with the depository bank. Assuming an exchange rate
of R19.31/US$1* the dividend payable on an ADR is equivalent to
7.61264 US cents for ADR holders before dividend tax. However, the
actual rate of payment will depend on the exchange rate on the date
for currency conversion.
* Based on an exchange rate of R19.31/US$1 at 23 February 2024. However,
the actual rate of payment will depend on the exchange rate on the
date for currency conversion.
Short-form announcement
This short-form announcement is the responsibility of the board of
directors of the Company.
Shareholders are advised that this short-form announcement represents
a summary of the information contained in the condensed consolidated
financial statements for the interim reporting period ended 31
December 2023 (results booklet) and does not contain full or complete
details published on the Stock Exchange News Service, via the JSE
cloudlink at:
https://senspdf.jse.co.za/documents/2024/jse/isse/HARE/HY24result.pdf
and on Harmony's website (www.harmony.co.za) on 28 February 2024.
The financial results as contained in the condensed consolidated
financial statements for the six months ended 31 December 2023, from
which this short-form announcement has been correctly extracted, have
been reviewed by Ernst & Young Inc., who expressed an unmodified
review conclusion thereon.
Any investment decisions by investors and/or shareholders should be
based on a consideration of the results booklets as a whole and
shareholders are encouraged to review the results booklet, which is
available for viewing on the Company's website and on the JSE
cloudlink, referred to above.
The results booklet is also available, together with the
aforementioned review report by the Company's external auditors, by
emailing HarmonyIR@harmony.co.za.
Ends.
For more details, contact:
Jared Coetzer
Head: Investor Relations
+27 (0)82 746 4120
Johannesburg, South Africa
28 February 2024
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
Date: 28-02-2024 01:00:00
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