Go Back Email this Link to a friend

HARMONY GOLD MINING COMPANY LIMITED - Harmony delivers - Returns cash to shareholders

Release Date: 02/02/2017 07:06:00      Code(s): HAR       PDF(s):  
Harmony delivers - Returns cash to shareholders

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”)


     -    Safety rates improving
     -    Declares interim dividend of 50 SA cents (approximately 4 US cents)
     -    Headline earnings of 150 SA cents (11 US cents)
     -    8% increase in gold production
     -    3% increase in grade – upward trend continues
     -    R627 million (US$45 million) cash inflows from hedging activity
     -    Repaid most of its debt
     -    Only a 4% increase in all-in sustaining costs at R510 506/kg (14% to
          US$1 136/oz due to exchange rate)

Johannesburg: Thursday, 2 February 2017. Harmony Gold Mining Company Limited
(“Harmony” and/or “the Company”) today announced its results for the six months
ended 31 December 2016.

“We achieved all we set out to in the six months from 1 July 2016 to 31 December
2016. We delivered on our strategy to mine safe, profitable ounces and increase
our margins. Our cash flow continues to be strong, which allowed us to declare an
interim dividend – the second dividend in 12 months. Harmony has a sustainable
investment case based on prudent financial planning and on capital allocation that
is aimed at enhancing the value of our portfolio”, Peter Steenkamp, chief executive
officer of Harmony said.

Revenue, including the gold hedge, increased by 3% to R9.868 billion (13% to
US$706 million) in the six months ended 31 December 2016. Total production profit
decreased to R2.474 billion (US$177 million), from R3.092 billion US$201 million)
in H2FY16 after accounting for an increase in cash operating costs.

Positive cash flow generation from our operations in the past 12 months enabled
the Company to pay a final dividend of R218 million (US$16 million) in September
2016 for FY16, and reduce net debt from R1.1 billion (US$74 million) at the end
of       30   June   2016   to   R289   million   (US$21   million)   at   the   end   of
31 December 2016.
All-in sustaining costs for all operations increased by only 4% to R510 506/kg in
H1FY17, compared to R492 898/kg in H2FY16 (increased by 14% to US$1 136/oz compared
to US$996/oz in H2FY16, largely due to the strengthening in the Rand).

Headline earnings amounted to 150 SA cents per share (11 US cents per share)
compared to headline earnings of 324 SA cents per share (21 US cents per share)
for the six months ended 30 June 2016.    This is more than a 100% higher than the
headline loss of 103 cents (8 US cents) reported in the previous comparable period
in 2015.

Peter concluded that “our operations – both in South Africa and Papua New Guinea
– are maintaining their momentum and we believe that our annual guidance of
approximately 1 050 000oz of gold at   a cash cost of about $1 100/oz (~R495 000/kg
at an exchange rate of R14.00) is achievable.        We will continue our strong
operational performance and create further value uplift.”

For more details contact:

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)

2 February 2017
J.P. Morgan Equities South Africa Proprietary Limited.

Date: 02/02/2017 07:06:00 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
© 2021 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.