HARMONY GOLD MINING COMPANY LIMITED - Harmony meets annual production guidance; creates further cash certaintyRelease Date: 18/07/2016 07:05:00 Code(s): HAR PDF(s):
Harmony meets annual production guidance; creates further cash certainty
Harmony Gold Mining Company Ltd
Registration number: 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
(“Harmony” or “the company”)
Harmony meets annual production guidance; creates further
Harmony Gold Mining Company Limited (Harmony and/or the
Company) is pleased to announce that it has met its annual
production guidance of approximately 1.1 million ounces.
Year on year Harmony continued to differentiate itself
through quality grade management, increasing underground
grade by 6% to 5.02g/t – making it the fourth consecutive
year of increased recovered underground grades.
To create further cash certainty, Harmony has entered into
short term gold forward sale contracts for a total of 432 000
ounces over a period of 24 months, representing approximately
20% of the Company’s total production. The sharp increase in
and the volatility of the R/kg gold price provided Harmony
with an opportunity to lock in 20% of its gold sales at a
very attractive average rate of approximately R682 000/kg.
The limited size and duration of the hedge means shareholders
retain full upside exposure on 80% of Harmony’s future gold
production for the next two years, after which shareholders
will have 100% exposure to the gold price.
“Our hard work has paid off and I am extremely pleased with
Harmony’s performance. Harmony is well positioned to benefit
from a strong R/kg gold price. We remain positive on the
strength of the gold price, with cash certainty being key in
times of extreme gold price volatility. The gold hedge was a
necessary short term step to secure our margins at some of
our higher cost operations and creates certainty on a portion
of our future cash flows. It enables us to further reduce our
debt and strengthen our balance sheet,” said Peter Steenkamp,
chief executive officer of Harmony.
Harmony will announce its operating and financial results for
the six months and year ended 30 June 2016 on Wednesday 17
August 2016, during a live presentation at the Hilton Hotel,
Sandton, at 9am SA time. For webcast and dial-in information
on the day, please refer to www.harmony.co.za/investors.
For more details contact:
Investor Relations Manager
Tel: +27 (0)82 759 1775
Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27(0) 82 888 1242
Johannesburg, South Africa
18 July 2016
J.P. Morgan Equities South Africa Proprietary Limited
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