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HARMONY GOLD MINING COMPANY LIMITED - Operational update for the nine months ended 31 March 2017

Release Date: 09/05/2017 07:05:00      Code(s): HAR       PDF(s):  
Operational update for the nine months ended 31 March 2017

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


OPERATIONAL UPDATE
FOR THE NINE MONTHS ENDED 31 MARCH 2017


HARMONY'S ANNUAL PRODUCTION GUIDANCE WELL IN REACH

Johannesburg. Tuesday, 9 May 2017. Harmony Gold Mining Company Limited ("Harmony" or "the company") advises that the annual 
gold production guidance of 1.05 million ounces is well in reach, with year to date production at 812 000 ounces at a cash operating 
cost of R439 669/kg (US$996/oz).

Harmony recorded an 8% operating free cash flow margin year to date, strengthened by the gold hedging agreements that are in 
place. The company's underground average recovered grade remains above 5g/t. The all-in sustaining costs (AISC) for the nine months 
ended 31 March 2017 is US$1170/oz or R516 630/kg.

Quarter on quarter gold production was 7% lower mainly due to the customary slow start up after the December holidays. AISC
increased by 5% to R529 409/kg (or 10% to US$1 246/oz) quarter on quarter. 
 
Chief Executive Officer, Peter Steenkamp, commented that: "The fundamentals underpinning our mine plans enable us to achieve 
our annual production guidance.  Safety, costs and grade continue to be a focus and higher production in the fourth quarter will drive 
down unit costs".
 
Below is a table setting out Harmony's operational results for the nine months ended 31 March 2017:


                                                                                                                                 Nine
                                                                                                                               months
                                                                                                                                ended
                                                                                                                                March
                                                                                                                                 2017
Gold produced                                - kg                                                                              25 262
                                             - oz                                                                             812 192
Underground grade                            - g/t                                                                               5.03
Gold price received                          - R/kg                                                                           573 229
                                             - US$/oz                                                                           1 299
Cash operating costs                         - R/kg                                                                           439 669
                                             - US$/oz                                                                             996
All-in sustaining costs                      - R/kg                                                                           516 630
                                             - US$/oz                                                                           1 170
Production profit                            - R million                                                                        3 276
                                             - US$ million                                                                        239
Operating free cash flow margin              - %                                                                                    8
Exchange rate                                - R/US$                                                                            13.73

Quarter on quarter operating results tables is included below.

The operational update report has not been reviewed or audited by the company's external auditors. Detailed financial and operational
results are provided on a six-monthly basis at the end of December and June.

OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC)



                                                                                                                                                                   South Africa
                                                                                                                                         Underground production                                                                      Surface production
                                         Three                                                                                                                                                                                                                              Total
                                         months                                                                                                                                                                 Total                              Total        South      Hidden       Total
                                         ended         Tshepong         Phakisa        Bambanani            Joel        Doornkop        Target 1    Kusasalethu       Masimong      Unisel    Underground     Phoenix      Dumps     Kalgold     Surface       Africa      Valley(1)  Harmony
Ore milled                - t'000        Mar-17             256             151               52             124             156             173            145            147          83          1 287       1 662        602         374       2 638        3 925         868       4 793
                                         Dec-16             243             158               60             127             160             191            161            155         104          1 359       1 697        712         364       2 773        4 132         760       4 892
Yield(2)                  - g/tonne      Mar-17            4.63            5.28            11.46            4.12            4.33            4.08           7.24           4.35        3.76           5.03        0.14       0.40        0.76        0.28         1.84        1.00        1.72
                                         Dec-16            4.78            6.33            11.78            4.70            4.21            3.34           6.58           3.88        4.21           5.06        0.13       0.38        0.77        0.28         1.85        1.29        1.77
Gold produced             - kg           Mar-17           1 184             798              596             511             675             706          1 050            639         312          6 471         226        238         284         748        7 219         816       8 035
                                         Dec-16           1 161           1 000              707             597             674             637          1 060            601         438          6 875         229        268         281         778        7 653         944       8 597
Gold sold                 - kg           Mar-17           1 230             829              620             493             691             721          1 119            664         325          6 692         218        261         280         759        7 451         788       8 239
                                         Dec-16           1 118             963              681             583             661             643            985            579         422          6 635         215        250         243         708        7 343         899       8 242
Gold price                - R/kg         Mar-17         551 618         556 441          551 421         545 609         551 077         550 739        543 977        551 000     550 702        550 220     514 358    547 663     550 379     539 099      549 088     518 942     546 772
received                                 Dec-16         566 847         567 361          566 667         568 142         568 569         567 240        575 593        567 066     566 986        568 553     545 833    570 464     569 848     562 773      567 996     541 700     565 360
Revenue                   (R'000)        Mar-17         678 490         461 290          341 881         268 985         380 794         397 083        608 710        365 864     178 978      3 682 075     112 130    142 940     154 106     409 176    4 091 251     321 744   4 412 995
                                         Dec-16         633 735         546 369          385 900         331 227         375 824         364 735        566 959        328 331     239 268      3 772 348     117 354    142 616     138 473     398 443    4 170 791     443 111   4 613 902
Cash operating            (R'000)        Mar-17         485 673         390 383          210 635         219 382         314 042         333 619        482 900        270 541     205 379      2 912 554      88 931    101 138     118 268     308 337    3 220 891     266 683   3 487 574
cost                                     Dec-16         481 289         388 878          214 723         229 898         292 150         321 011        493 622        267 759     205 304      2 894 634      91 750    110 707     173 375     375 832    3 270 466     372 161   3 642 627
Inventory                 (R'000)        Mar-17          15 217          16 356           11 094         (12 807)          5 721           6 399         31 814          7 719       7 503         89 016      (2 850)    10 818       2 911      10 879       99 895      23 405     123 300
movement                                 Dec-16         (19 978)        (16 417)         (12 212)         (8 524)         (2 863)          7 764        (29 597)       (10 663)    (7 270)        (99 760)     (5 499)    (6 520)    (19 577)    (31 596)    (131 356)     (2 175)   (133 531)
Operating costs           (R'000)        Mar-17         500 890         406 739          221 729         206 575         319 763         340 018        514 714        278 260     212 882      3 001 570      86 081    111 956     121 179     319 216    3 320 786     290 088   3 610 874
                                         Dec-16         461 311         372 461          202 511         221 374         289 287         328 775        464 025        257 096     198 034      2 794 874      86 251    104 187     153 798     344 236    3 139 110     369 986   3 509 096
Production profit         (R'000)        Mar-17         177 600          54 551          120 152          62 410          61 031          57 065         93 996         87 604     (33 904)       680 505      26 049     30 984      32 927      89 960      770 465      31 656     802 121
                                         Dec-16         172 424         173 908          183 389         109 853          86 537          35 960        102 934         71 235      41 234        977 474      31 103     38 429     (15 325)     54 207    1 031 681      73 125   1 104 806
Capital                   (R'000)        Mar-17          91 606          72 689           18 633          59 876          64 477          71 056         62 729         25 986      19 004        486 056         841     25 143      35 250      61 234      547 290     312 239     859 529
expenditure                              Dec-16          96 306          79 352           21 298          62 501          64 330          67 162         67 948         28 645      18 443        505 985       1 369     41 350      (8 736)     33 983      539 968     321 002     860 970
Cash operating            - R/kg         Mar-17         410 197         489 202          353 414         429 319         465 247         472 548        459 905        423 382     658 266        450 093     393 500    424 950     416 437     412 215      446 169     411 548     443 317
costs                                    Dec-16         414 547         388 878          303 710         385 089         433 457         503 942        465 681        445 522     468 731        421 038     400 655    413 086     616 993     483 075      427 344     431 241     427 739
Cash operating            - R/tonne      Mar-17           1 897           2 585            4 051           1 769           2 013           1 928          3 330          1 840       2 474          2 263          54        168         316         117          821         412         763
costs                                    Dec-16           1 981           2 461            3 579           1 810           1 826           1 681          3 066          1 727       1 974          2 130          54        155         476         136          791         555         759
Cash operating            - R/kg         Mar-17         487 567         580 291          384 678         546 493         560 769         573 194        519 647        464 049     719 176        525 206     397 221    530 592     540 556     494 079      521 981     893 398     552 574
cost and Capital                         Dec-16         497 498         468 230          333 835         489 781         528 902         609 377        529 783        493 185     510 838        494 635     406 633    567 377     585 904     526 754      497 901     803 202     528 839
Operating free            %              Mar-17              15               -               33              (4)              1              (2)            10             19         (25)             8          20         12           2          10            8         (71)          2
cash flow margin(3)                      Dec-16               9              14               39              12               5              (6)             1             10           6             10          21         (7)        (20)         (3)           9         (36)          4




All-in sustaining cost    - R/kg         Mar-17         492 028         597 433          409 880         502 942         544 986          590 821       533 646        476 839     733 935        531 591     398 725    525 284     572 605     506 391      528 826     536 411     529 409
                                         Dec-16         502 124         481 170          333 689         447 311         572 873          632 656       552 632        506 539     526 748        506 127     406 498    420 512     616 891     483 657      503 941     510 204     504 538 



1 Ore milled for Hidden Valley includes 221 000 tonnes (Dec-16: 90 000t) that has been capitalised as part of pre-stripping of stages 5 and 6. Gold produced and 
  sold for Hidden Valley includes 168 kilograms (Dec-16: 81kg) that has been capitalised.
2 Yield for December 2016 quarter restated to exclude Hidden Valley's capitalised production.
3 Excludes run of mine costs for Kalgold (Mar-17: R1.785m, Dec-16: -R0.904m) and Hidden Valley (Mar-17: R29.314m, Dec-16: R92.080m).



CONTACT DETAILS



CORPORATE OFFICE                                                                                        TRANSFER SECRETARIES
Randfontein Office Park                                                                                 Link Market Services South Africa (Proprietary) Limited
PO Box 2, Randfontein, 1760, South Africa                                                               (Registration number 2000/007239/07)
Corner Main Reef Road and Ward Avenue                                                                   13th Floor, Rennie House, Ameshoff Street, Braamfontein
Randfontein, 1759, South Africa                                                                         PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 11 411 2000                                                                              Telephone: +27 86 154 6572
Website: www.harmony.co.za                                                                              E-mail: info@linkmarketservices.co.za
                                                                                                        Fax: +27 86 674 2450
DIRECTORS
PT Motsepe* (chairman)                                                                                  ADR* DEPOSITARY
FFT De Buck*^ (lead independent director)                                                               Deutsche Bank Trust Company Americas
JM Motloba*^ (deputy chairman)                                                                          c/o American Stock Transfer and Trust Company
PW Steenkamp (chief executive officer)                                                                  Peck Slip Station
F Abbott (financial director)                                                                           PO Box 2050, New York, NY 10272-2050
JA Chissano*1^, KV Dicks*^, Dr DSS Lushaba*^                                                            E-mail queries: db@amstock.com
HE Mashego**, M Msimang*^, KT Nondumo*^                                                                 Toll free: +1-800-937-5449
VP Pillay*^, JL Wetton*^, AJ Wilkens*                                                                   Int: +1-718-921-8137
* Non-executive                                                                                         Fax: +1-718-765-8782
** Executive                                                                                            *ADR: American Depositary Receipts
^ Independent
1 Mozambican                                                                                            SPONSOR
                                                                                                        JP Morgan Equities South Africa (Pty) Ltd
INVESTOR RELATIONS                                                                                      1 Fricker Road, corner Hurlingham Road
E-mail: harmonyIR@harmony.co.za                                                                         Illovo, Johannesburg, 2196
Marian van der Walt                                                                                     Private Bag X9936, Sandton, 2146
Executive: Corporate and Investor Relations                                                             Telephone: +27 11 507 0300
Telephone: +27 11 411 2037                                                                              Fax: +27 11 507 0503
Fax: +27 86 614 0999                                                                               
Mobile: +27 82 888 1242                                                                                 TRADING SYMBOLS
E-mail: marian@harmony.co.za                                                                            JSE Limited: HAR
                                                                                                        New York Stock Exchange, Inc.: HMY
Lauren Fourie
Investor Relations Manager
Telephone: +27 11 411 2025                                                                              REGISTRATION NUMBER:
Mobile: +27 72 436 3512                                                                                 1950/038232/06
E-mail: lauren.fourie@harmony.co.za                                                                     Incorporated in the Republic of South Africa

COMPANY SECRETARY                                                                                       ISIN:
Riana Bisschoff                                                                                         ZAE 000015228
Telephone: +27 11 411 6020
Fax: +27 11 696 9734
Mobile: +27 83 629 4706
E-mail: riana.bisschoff@harmony.co.za

                                                                                        www.harmony.co.za
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