Go Back Email this Link to a friend


HARMONY GOLD MINING COMPANY LIMITED - Harmony focuses on free cash flow through reevaluating the development of the decline shaft at Phakisa

Release Date: 08/08/2014 12:00:00      Code(s): HAR       PDF(s):  
Harmony focuses on free cash flow through reevaluating the development of the decline shaft at Phakisa

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


Harmony focuses on free cash flow through reevaluating the development of
the decline shaft at Phakisa

Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”)
today announced that it has completed its business plans (“plans”) for
financial year 2015. Particular focus was placed on the following:

• improving operating margins
• robust and realistic operating planning
• increasing free cash flow through higher grades and cost control
• capital expenditure which ensures returns are made within a reasonable
period of time

The plans form the basis for assessing whether any impairment against the
carrying value of an asset is required. These values are informed by a
number of factors, including estimates of future gold prices and exchange
rates, life of mine plans and operating and capital cost estimates. The
business plans include the write-down of the carrying value of Phakisa. A
total impairment of approximately R1.4 billion will be recorded in
Harmony’s financial results for the year ended 30 June 2014, which will
reduce the net profit of the company, but will not have an impact on
reported cash balances and free cash flow.

An updated feasibility study was recently completed on the Phakisa
decline project and showed that a large amount of capital was required to
develop the decline project. To ensure that Phakisa meets the planning
factors set out above, it has been decided not to continue with the
development of the decline.

“Our planning process was specifically aimed at ensuring that Harmony is
a safe, profitable and cash generative company. A portion of the Phakisa
project area will be more efficiently mined from Tshepong and this has
been included in the business plan of Tshepong. We will re-consider the
Phakisa decline in future, as the project as a whole is worth investing
in”, said Graham Briggs, chief executive officer.

Harmony will release its results for Q4 FY14 and the year ended 30 June
2014, on Thursday, 14 August 2014. Please refer to the Company’s website
(www.harmony.co.za/investors) for more information on the results
presentation, webcast link and dial-in details.

For more details contact:

Henrika Ninham
Investor Relations Manager
+27 (0) 82 759 1775 (mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)



8 August 2014

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

Date: 08/08/2014 12:00:00 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.

                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.