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HARMONY GOLD MINING COMPANY LIMITED - Harmonys strategy to grow margins and increase cash flow

Release Date: 18/08/2015 07:06:00      Code(s): HAR       PDF(s):  
Harmony’s strategy to grow margins and increase cash flow

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”)

Harmony’s strategy to grow margins and increase cash flow

Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”)
today announced its fourth quarter and year end results for the
financial year 2015 (FY15). Gold production increased by 4% and gold
sold increased by 12% quarter on quarter. Total gold production for
the year is 1.08 million ounces. The previous quarter’s headline loss
of 60 SA cents (5 US cents) per share was turned into a profit of 44 SA
cents (4 US cents) (including year-end accounting adjustments).

Following Harmony’s annual life-of-mine reassessment, a net loss of
R4.5 billion (US$396 million) was recorded in FY15 due to a total
impairment of R3.5 billion (US$303 million). The impairment of R3 471
million in the June 2015 quarter consists of an impairment of R2 114
million in respect of Hidden Valley, R1 036 million on Doornkop, R278
million on Phakisa and R43 million on Freddies 9. The impairments are
due to the restructuring of operations for profitability and in
response to low commodity prices and high operating costs, which
resulted in a reduced life of mine.

The Kili Teke prospect is a new exciting copper-gold discovery and
drilling to convert the prospect into a new copper-gold resource
continues. Kili Teke could well be another Golpu.

“We have restructured each of our operations to ensure that our company
is profitable even in a tough gold price environment. Harmony remains a
relevant gold player, adding value through job creation, taxes and
community upliftment in both South Africa and Papua New Guinea. Our
focus is therefore on increasing our margins – not only through capital
curtailment and cost reductions, but most importantly through
increasing our production”, said Graham Briggs, chief executive

For more details contact:

Henrika Ninham
Investor Relations Manager
On +27 (0)82 759 1775

Marian van der Walt
Executive: Corporate and Investor Relations
+27(0) 82 888 1242
Johannesburg, South Africa
18 August 2015

J.P. Morgan Equities South Africa Proprietary Limited

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