HARMONY GOLD MINING COMPANY LIMITED - Impairment of Hidden Valley assetRelease Date: 18/06/2013 16:57:00 Code(s): HAR PDF(s):
Impairment of Hidden Valley asset
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”)
Impairment of Hidden Valley asset
Harmony Gold Mining Company Limited (“Harmony” or the “Company”)
is currently compiling its financial year 2014 business plans,
which will be completed by the end of its 2013 financial year,
being 30 June 2013. Once approved, Harmony will use these plans to
assess the carrying value of its assets to determine if any
impairments are required (“impairment testing”). This will be
informed by a number of factors, including estimates of the future
gold price and exchange rates, life of mine plans, and operating
and capital cost estimates.
At this early stage it appears likely that there will be a write-
down of a portion of the carrying value of Hidden Valley in Papua
New Guinea, due to its recent poor performance and the reduction
in the US dollar gold and silver prices.
Harmony will advise the market of the outcome of the impairment
testing, which the Company anticipates to be towards the end of
July 2013. It should be noted that the write-down of the carrying
value of Hidden Valley will reduce the net profit of the company,
but will not have an impact on reported cash balances and free
Harmony was incorporated 62 year ago and is one of the largest gold
mining companies in the world and the third largest gold producer in
South Africa with a reported production of 1.17* million ounces of gold
for the financial year 2012 and Mineral Reserves of 52.9 million ounces.
Harmony is a multi-listed company and its primary listing is on the JSE
Limited (ticker: HAR). The company’s shares are also quoted in the form
of American Depositary Receipts (ADRs) on the New York Stock Exchange
(ticker: HMY) and as International Depositary Receipts (IDRs) on the
Berlin (ticker: HAM1) and Brussels exchanges (HMY).
Harmony operates mines in South African and Papua New Guinea. In South
Africa, the company has ten underground mines and one open-pit mine and
several surface operations in South Africa. In PNG, Harmony has a 50%
interest in the Morobe Mining Joint Ventures, which includes Hidden
Valley, an open-pit gold and silver mine, the exciting Wafi -Golpu
project, and extensive exploration tenements. Outside the joint venture,
Harmony’s own exploration portfolio focuses principally on highly
prospective areas in PNG. The Company’s head office is situated in
Randfontein, South Africa.
For more details contact:
+27 (0) 82 800 4290 (mobile)
18 June 2013
J.P. Morgan Equities South Africa Proprietary Limited
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