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HARMONY GOLD MINING COMPANY LIMITED - Operational update for the nine months and quarter ended 31 March 2018

Release Date: 02/05/2018 14:56:00      Code(s): HAR       PDF(s):  
Operational update for the nine months and quarter ended 31 March 2018

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 AND QUARTER ENDED 31 MARCH 2018


HARMONY CONFIDENT THAT IT WILL DELIVER ON FY18 GUIDANCE

Johannesburg. Wednesday 2 May 2018. Harmony Gold Mining Company Limited ("Harmony" or "the company") is pleased to provide an operational
update for the nine months and quarter ended 31 March 2018.

Chief Executive Officer, Peter Steenkamp, commented that: "We are on track to meet annual production guidance of 1.18 Moz. Harmony's performance in
the fourth quarter of FY18 will be boosted with the inclusion of Moab Khotsong and higher production at Hidden Valley where production is ramping up."

Regrettably three fatalities were recorded in two separate incidents during the quarter. We will continue to make every effort to ensure safe working areas
and that our employees are safe. Operational excellence during the March 2018 quarter was key in supporting steady production and underground grade
performance and achieving good cost control.

Moab Khotsong became part of the Harmony asset portfolio on 1 March 2018, producing 764kg (24 563oz) of gold attributable to the March 2018 month.

The integration of Harmony's information technology systems, management and operating processes at the operation is progressing well. The operating
results for Moab Khotsong and the Harmony group's all-in sustaining cost (AISC) will be provided in the full year FY18 results to be released in August 2018.


FY18 PRODUCTION GUIDANCE UPDATE

Group gold production is updated to 1.18 million ounces (from 1.1 million ounces) following the inclusion of the Moab Khotsong operation from 1 March
2018. Annual AISC cost guidance is unchanged at R520 000/kg.

Production and grade guidance for Moab Khotsong for the four months ending 30 June 2018 is 2 500kg (80 000oz) and 8.00g/t respectively.


OPERATIONAL RESULTS - NINE MONTHS ENDED MARCH 2018 COMPARED TO NINE MONTHS ENDED MARCH 2017

Note: Discussion below excludes the operational results of Moab Khotsong.

Group production was steady at 25 401 kg (816 663oz) (up by 1%), underground grade 3% higher at 5.19g/t and cash operating costs well contained at
R433 502/kg (5% increase in US Dollar terms to US$1 043/oz) when compared to the comparative nine months ended 31 March 2017.

The average gold price received including the Rand/gold hedge was R574 451/kg (US$ 1 383/oz).

For translation purposes the average Rand/US$ exchange rate strengthened by 6%.


OPERATIONAL RESULTS - Q3FY18 TO Q3FY17

Note: Discussion below excludes the operational results of Moab Khotsong.

Seasonally, the March quarter performance is influenced by a slower production start-up after the December holiday period. In addition, the Easter holiday
period fell within the March 2018 quarter.

The average gold price received including the Rand/gold hedge was R559 538/kg (US$ 1 456/oz).

Group production and underground grade remained flat at 7 983 kg (256 660oz), and 5.02g/t respectively. Cash operating costs increased by 5% to
R467 090/kg (16% increase in US Dollar terms to US$1 215/oz) when compared to the comparative quarter ended 31 March 2017.

For translation purposes the average Rand/US$ exchange rate strengthened by 10%.


OPERATING RESULTS SUMMARY (EXCLUDING MOAB KHOTSONG)
                                                           Nine months        Nine months                         Quarter           Quarter
                                                                 ended              ended         Variance          ended             ended               Variance
                                                                Mar-18             Mar-17                %         Mar-18            Mar-17                     %
Gold produced(1)                         kg                     25 401             25 262                1          7 983             8 035                    (1)
                                         oz                    816 663            812 192                1        256 660           258 330                    (1)
Underground grade                        g/t                      5.19               5.03                3           5.02              5.03                     -
Gold price received                      R/kg                  574 451            573 229                -        559 538           546 772                     2
                                         US$/oz                  1 383              1 299                6          1 456             1 287                    13
Cash operating costs                     R/kg                  433 502            439 669                1        467 090           443 317                    (5)
                                         US$/oz                  1 043                996               (5)         1 215             1 043                   (16)
Total costs and capital(2)               R/kg                  511 975            507 822               (1)       554 027           515 186                    (8)
                                         US$/oz                  1 234              1 150               (7)         1 442             1 213                   (19)
Exchange rate                            R/US$                   12.92              13.73               (6)         11.95             13.22                   (10)

(1) Includes capitalized production for Hidden Valley for the nine months ended Mar-18: 1 254kgs (40 328oz), Mar-17: 249kgs (8 016oz)) for the quarter ended
    Mar-18: 857kgs (27 550oz), Mar-17: 168kgs (5 398oz)

(2) Excludes capitalised gold production as per note 1 as well as investment capital of for the nine months ended Mar-18: R1,298m (US$99,1m) (Mar-17: R600m
    (US$44,2m)) for Hidden Valley. For the quarter ended Mar-18: R198m (US$16,6m) (Mar-17: R294m (US$22,3m))

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 for the period ended December and June.

Operating results - Year on Year (Rand/Metric)
(excludes Moab Khotsong) (Unaudited)

                                                                                                                                                             South Africa
                                                                                                       Underground production                                                                                   Surface production
                                           Nine                                                                                                                                                           Central                                                     Total
                                           months    Tshepong                                                                                                                     Total                     plant                                     Total           South       Hidden            Total
                                           ended    operations   Bambanani           Joel(#)      Doornkop     Target 1     Kusasalethu        Masimong       Unisel(#)     Underground    Phoenix    reclamation       Dumps        Kalgold        Surface          Africa      Valley(1,#)      Harmony
Ore milled                - t'000          Mar-18       1 288          179              347            516          511             483             483            309            4 116      4 526          2 839       1 653          1 150         10 168          14 284        1 491           15 775
                                           Mar-17       1 269          175              392            473          557             468             478            300            4 112      5 054              -       2 075          1 127          8 256          12 368        2 101           14 469
Yield                     - g/tonne        Mar-18        5.54        12.02             3.64           4.84         4.04            6.61            4.21           3.28             5.19      0.121          0.129       0.424           0.80           0.25            1.67         1.12             1.66
                                           Mar-17        5.20        11.86             4.61           4.21         3.33            6.90            3.91           4.20             5.03      0.137              -       0.360           0.79           0.28            1.86         1.11             1.77
Gold produced                - kg          Mar-18       7 133        2 152            1 262          2 495        2 063           3 195           2 034          1 013           21 347        548            367         701            919          2 535          23 882        1 519           25 401
                                           Mar-17       6 600        2 076            1 809          1 993        1 857           3 231           1 870          1 260           20 696        693              -         748            894          2 335          23 031        2 231           25 262
Gold sold                    - kg          Mar-18       7 066        2 132            1 300          2 482        2 067           3 133           2 017          1 004           21 201        544            369         702            900          2 515          23 716        1 485           25 201
                                           Mar-17       6 591        2 072            1 806          2 015        1 845           3 250           1 871          1 255           20 705        679              -         752            861          2 292          22 997        2 165           25 162
Gold price                   - R/kg        Mar-18     576 149      575 661          574 590        574 081      576 434         576 150         575 884        575 180          575 719    538 994        577 035     572 809        576 544        567 452         574 843      543 805          574 451
received                                   Mar-17     576 706      576 395          576 656        575 593      571 289         576 039         573 910        578 146          575 809    555 776              -     574 688        577 468        570 130         575 243      549 052          573 229
Revenue                      (R'000)       Mar-18   4 071 072    1 227 310          746 967      1 424 870    1 191 489       1 805 079       1 161 559        577 481       12 205 827    293 213        212 926     402 112        518 890    1   427 141    13   632 968      164 773     13   797 741
                                           Mar-17   3 801 067    1 194 290        1 041 440      1 159 820    1 054 029       1 872 126       1 073 785        725 573       11 922 130    377 372              -     432 165        497 200    1   306 737    13   228 867    1 051 983     14   280 850
Cash operating               (R'000)       Mar-18   2 868 705      669 798          675 206      1 039 499      991 186       1 559 565         865 939        624 806        9 294 704    242 472        141 410     279 230        405 781    1   068 893    10   363 597      104 184     10   467 781
cost                                       Mar-17   2 755 992      660 221          703 406        911 813    1 002 729       1 519 958         834 860        630 674        9 019 653    275 917              -     330 133        441 982    1   048 032    10   067 685      929 763     10   997 448
Inventory                    (R'000)       Mar-18     (32 747)     (13 680)          20 325           (908)       2 900         (30 683)         (7 360)        (4 646)         (66 799)    (3 345)         2 120         122         (9 591)       (10 694)        (77 493)      37 694          (39 799)
movement                                   Mar-17      (5 260)      (3 269)          (7 101)         7 200       (4 006)         15 833          (3 074)          (988)            (665)    (3 595)             -       5 691        (11 888)        (9 792)        (10 457)      18 265            7 808
Operating costs              (R'000)       Mar-18   2 835 958      656 118          695 531      1 038 591      994 086       1 528 882         858 579        620 160        9 227 905    239 127        143 530     279 352        396 190    1   058 199    10   286 104      141 878     10   427 982
                                           Mar-17   2 750 732      656 952          696 305        919 013      998 723       1 535 791         831 786        629 686        9 018 988    272 322              -     335 824        430 094    1   038 240    10   057 228      948 028     11   005 256
Production profit            (R'000)       Mar-18   1 235 114      571 192           51 436        386 279      197 403         276 197         302 980        (42 679)       2 977 922     54 086         69 396     122 760        122 700        368 942     3   346 864       22 895      3   369 759
                                           Mar-17   1 050 335      537 338          345 135        240 807       55 306         336 335         241 999         95 887        2 903 142    105 050              -      96 341         67 106        268 497     3   171 639      103 955      3   275 594
Capital                      (R'000)       Mar-18     732 723       47 440          185 867        195 210      230 955         216 154          92 796         73 601        1 774 746      2 590         16 430           -         92 984        112 004     1   886 750    1 306 250      3   193 000
expenditure                                Mar-17     515 922       60 583          179 917        175 735      211 043         201 629          80 905         54 412        1 480 146      4 689        115 134       4 194         43 530        167 547     1   647 693      656 709      2   304 402
Cash operating               - R/kg        Mar-18     402 174      311 244          535 029        416 633      480 459         488 127         425 732        616 788          435 410    442 467        385 313     398 331        441 546        421 654         433 950      393 147          433 502
costs                                      Mar-17     417 575      318 026          388 837        457 508      539 973         470 430         446 449        500 535          435 816    398 149              -     441 354        494 387        448 836         437 136      469 103          439 669
Cash operating               - R/tonne     Mar-18       2 227        3 742            1 946          2 015        1 940           3 229           1 793          2 022            2 258         54             50         169            353            105             726          440              721
costs                                      Mar-17       2 172        3 773            1 794          1 928        1 800           3 248           1 747          2 102            2 193         55              -         159            392            127             814          519              777
Cash operating               - R/kg        Mar-18     504 897      333 289          682 308        494 873      592 410         555 781         471 354        689 444          518 548    447 193        430 082     398 331        542 726        465 837         512 953      423 804          511 975
cost and capital(2)                        Mar-17     495 745      347 208          488 294        545 684      653 620         532 834         489 714        543 719          507 335    404 915              -     446 961        543 078        520 591         508 679      497 866          507 822
Operating free               %             Mar-18          12           42              (15)            13           (3)              2              17            (21)               9         16             26          31              3             17              10           38               12
cash flow margin(3)
                                           Mar-17          14            40                 15           6          (15)              8              15              6               12         26              -          23              2              7             11            22               13
(1) Ore milled for Hidden Valley includes 1 254 000 tonnes (Mar-17: 311 000t) that has been capitalised as part of pre-stripping of stages 5 & 6.
    Production for Hidden Valley includes gold produced (1 254kgs, Mar-17: 249kgs) and sold (1 182kgs, Mar-17: 249kgs) that has been capitalised.

(2) Excludes capitalised gold production as per note 1 as well as investment capital of R1,298m (Mar-17:R600m) for Hidden Valley.

(3) Excludes run of mine costs for Kalgold (Mar-18:R-5,554m, Mar-17:R-0,503m) and Hidden Valley (Mar-18:R10,016m, Mar-17:R170,108m)
    as well as Hidden Valley's investment capital as per note 2.

(#) Unisel: As reported in the December 2017 interim period, mining of the Leader Reef was stopped to accelerate mining of the higher grade
    pillar areas. The operation was successfully restructured during the March 2018 quarter and the majority of employees transferred to other
    operations with vacancies. An improved performance is expected from Unisel during the June 2018 quarter.

(#) Joel: The Joel decline major project is nearing completion and development in the footwall areas has commenced. Development is expected
    to continue for 12 to 18 months whereafter grades are expected to increase to reserve grade.

#)   Hidden Valley: Production at Hidden Valley is ramping up well and the operation is set to achieve annual production guidance of 90 000oz.


CONTACT DETAILS

CORPORATE OFFICE

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: www.harmony.co.za

DIRECTORS

PT Motsepe* (chairman)
FFT De Buck*^ (lead independent director)
JM Motloba*^ (deputy chairman)
PW Steenkamp (chief executive officer)
F Abbott (financial director)
JA Chissano*1^, KV Dicks*^, Dr DSS Lushaba*^
HE Mashego**, M Msimang*^, KT Nondumo*^
VP Pillay*^, MV Sisulu*^, JL Wetton*^, AJ Wilkens*
* Non-executive
** Executive
^ Independent
1 Mozambican

INVESTOR RELATIONS

E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 2314
Website: www.harmony.co.za

COMPANY SECRETARY

Telephone: +27 11 411 2094
E-mail: companysecretariat@harmony.co.za

TRANSFER SECRETARIES

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 11 713 0800
E-mail: info@linkmarketservices.co.za
Fax: +27 86 674 2450

ADR* DEPOSITARY

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries: db@amstock.com
Toll free: +1-800-937-5449
Int: +1-718-921-8137
Fax: +1-718-765-8782
*ADR: American Depositary Receipt

SPONSOR

JP Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503

TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc.: HMY

REGISTRATION NUMBER:

1950/038232/06
Incorporated in the Republic of South Africa

ISIN:

ZAE 000015228


HARMONY'S ANNUAL REPORTS

Harmony's Integrated Annual Report, the Sustainable
Development Information which serves as supplemental
information to the Integrated Annual Report and its annual
report filed on a Form 20F with the United States' Securities and
Exchange Commission for the financial year ended
30 June 2017 is available on our website
(www.harmony.co.za/investors)

www.harmony.co.za


FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the safe harbor
provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended, with respect to our financial condition,
results of operations, business strategies, operating efficiencies, competitive positions, growth
opportunities for existing services, plans and objectives of management, markets for stock and
other matters. These include all statements other than statements of historical fact, including,
without limitation, any statements proceeded by, followed by, or that include the words
"targets", "believes", "expects", "aims" "intends" "will", "may", "anticipates", "would",
"should", "could", "estimates", "forecast", "predict", "continue" or similar expressions or
the negative thereof.
These forward-looking statements, including, among others, those relating to our future
business prospects, revenues and income, wherever they may occur in this report and the
exhibits to this report, are essentially estimates reflecting the best judgment of our senior
management and involve a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking statements. As a consequence,
these forward-looking statements should be considered in light of various important factors,
including those set forth in this report. Important factors that could cause actual results to differ
materially from estimates or projections contained in the forward-looking statements include,
without limitation: overall economic and business conditions in South Africa, Papua New
Guinea, Australia and elsewhere, estimates of future earnings, and the sensitivity of earnings
to the gold and other metals prices, estimates of future gold and other metals production
and sales, estimates of future cash costs, estimates of future cash flows, and the sensitivity of
cash flows to the gold and other metals prices, statements regarding future debt repayments,
estimates of future capital expenditures, the success of our business strategy, development
activities and other initiatives, estimates of reserves statements regarding future exploration
results and the replacement of reserves, the ability to achieve anticipated efficiencies and other
cost savings in connection with past and future acquisitions, fluctuations in the market price
of gold, the occurrence of hazards associated with underground and surface gold mining, the
occurrence of labour disruptions, power cost increases as well as power stoppages, fluctuations
and usage constraints, supply chain shortages and increases in the prices of production imports,
availability, terms and deployment of capital, changes in government regulation, particularly
mining rights and environmental regulation, fluctuations in exchange rates, the adequacy of the
group's insurance coverage and socio-economic or political instability in South Africa and Papua
New Guinea and other countries in which we operate.

For a more detailed discussion of such risks and other factors (such as availability of credit
or other sources of financing), see the company's latest Integrated Annual Report on Form
20-F which is on file with the Securities and Exchange Commission, as well as the Company's
other Securities and Exchange Commission filings. The company undertakes no obligation to
update publicly or release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this annual report or to reflect the occurrence of unanticipated
events, except as required by law.

2 May 2018

Date: 02/05/2018 02:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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