HARMONY GOLD MINING COMPANY LIMITED - Harmony proves its critics wrongRelease Date: 05/11/2015 07:06:00 Code(s): HAR PDF(s):
Harmony proves its critics wrong
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
(“Harmony” and/or “the Company”)
Harmony proves its critics wrong
Increased production, free operational cash flow and on track to
meet annual guidance
Harmony Gold Mining Company Limited (“Harmony” and/or “the
Company”) today announced its results for the first quarter
ended 30 September 2015 of financial year 2016. The
Company’s restructuring efforts and its focus on what it can
control – production and
costs – yielded excellent results.
South African underground gold production increased by 17% (7
676kg/246 790oz) and underground recovered grade increased by
8% quarter on quarter to 4.99g/t. Production profit is 12%
higher at R701 million (US$54 million), with a 7% increase in
revenue at R4.1 billion (US$319 million). The Company
generated free cash flow of R122 million (US$10million)
during the quarter.
Harmony is operating its underground mines in South Africa at
an all-in sustaining cost of R434 829/kg (US$1 040/oz), which
means that it will continue to benefit from the current
higher R/kg gold price. All-in sustaining costs for all
operations decreased by 3% to R466 061/kg in the September
2015 quarter, compared to
R478 746/kg in the June 2015 quarter (decreased 10% from US$1
The Company’s exploration programme continues to enjoy
considerable success in locating copper-gold mineralisation.
In an environment where very little is being spent on
exploration and with the scarcity of new major copper and
gold discoveries, the results from the Kili Teke grassroots
prospect are very encouraging. In addition, the
feasibility study of the world-class gold-copper project,
Golpu, is set to be completed by December 2015.
“Harmony is proving all of its critics wrong. We continue to
improve our grade performance, our underground operations are
generating free cash flow, our costs are well managed and we
are on track to achieve our annual production guidance.
Combined with a much higher than expected R/kg gold price,
our margins are dramatically improved, enabling Harmony to
repay its debt and finance the development of Golpu”, said
Graham Briggs, chief executive officer.
For more details contact:
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
5 November 2015
J.P. Morgan Equities South Africa Proprietary Limited
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