HAR - Harmony - Press release: Harmony continues to drive its growth strategy Release Date: 05/05/2011 08:01:03 Code(s): HAR
HAR - Harmony - Press release: Harmony continues to drive its growth strategy
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
("Harmony" or "the company")
HARMONY CONTINUES TO DRIVE ITS GROWTH STRATEGY
Johannesburg: 5 May 2011: Harmony Gold Mining Company Limited today released its
financial results for the period ending 31 March 2011.
"We remain committed to our long term strategy of generating earnings to fund
growth. We have invested significant capital to build and commission some of the
best South African gold mining assets and the results of these efforts will be
fully realised in the future. Our transformational efforts and strategic
initiatives undertaken over the last few years are all aimed at achieving robust
and sustainable financial results, with better cash costs and improved grade",
said chief executive officer, Graham Briggs.
Harmony`s strategy also includes a focus on both regional and asset
diversification. In PNG, it has built a mine producing both gold and silver and
is currently busy with further exploration in the area which includes 8 000km2
of its own exploration tenements, in addition to the 3 200km2 held within the
joint venture with Newcrest. The early findings from Wafi-Golpu have justified
management`s long held belief that this is a world class asset.
Taking a holistic view, Harmony has several world-class mines in South Africa
which are currently in the build-up phase and these together with Hidden Valley,
will be significant contributors to Harmony`s set production targets.
Improved discipline and management of seismicity and falls of ground, value
based safety behaviour and visible leadership from the operational management
resulted in improved safety at most of our operations.
Gold production decreased by 2% quarter on quarter, from 10 055kg to 9 857kg.
Underground production was only 1% lower at 8 164kg, despite volumes decreasing
by 3% mainly as a result of the December break. However, tonnage was made up
with surface tonnes being 2% higher quarter on quarter.
Quarter on quarter the rand per kilogram unit cost was kept at bay with a mere
increase of 1% to R217 802/kg, in comparison to R216 595/kg in the previous
quarter. This was mainly as a result of the 2% decrease in gold production as
cash operating cost in Rand terms decreased by 2% (R48 million).
In R/kg terms the gold price received increased by 3% from R303 354/kg in the
December 2010 quarter to R312 029/kg in the current quarter. Revenue for the
March 2011 quarter decreased by 1% as a result of a 330kg (3%) decrease in the
Quarter on quarter the capital expenditure decreased by R168 million (20%).
Cash operating costs for the March 2011 quarter decreased by R48 million or 2%
when compared to the previous quarter due to cost savings, decreased electricity
and labour costs.
Operating profit decreased by 1% to R855 million when compared to the R868
million recorded in the December 2010 quarter.
Drilling at the Wafi-Golpu project continues to be successful. The latest
results confirm our previously held belief that this deposit is indeed a world-
class discovery and the pre-feasibility study will be completed towards the end
of December 2011. The latest drill hole results at our Wafi-Golpu JV project
(50% held by Harmony) have provided the highest mineralisation values to date.
This project is growing with each new drill hole result and we are confident
that this will be a mine.
In conclusion, the chief executive officer, Mr Graham Briggs commented that "the
company is showing significant progress both in the growth of its resources as
well as its diversity. The key short term objective for us is the build-up of
our production and to get there, the main focus is on getting the assets, in
which we have invested considerable amounts of cash over the last few years,
into full production. Harmony is a company which has dramatically improved the
quality of its ounces, which will continue to do so with better cash costs and
free cash flow in the future."
For more details contact:
Investor Relations Officer
on +27(0)82 759 1775
Marian van der Walt
Executive: Corporate and Investor Relations
on +27(0)82 888 1242
Randfontein Office Park
P O Box 2
South Africa 1760
T +27 (11) 411 2000
5 May 2011
J.P. Morgan Equities Limited
Date: 05/05/2011 08:01:02 Supplied by www.sharenet.co.za
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