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HARMONY GOLD MINING COMPANY LIMITED - Results for the year ended 30 June 2019

Release Date: 20/08/2019 07:05:00      Code(s): HAR       PDF(s):    
Results for the year ended 30 June 2019

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


Harmony well positioned to benefit from higher gold prices

Johannesburg. Tuesday, 20 August 2019. Harmony Gold Mining Company Limited (“Harmony”
or “the Company”) is pleased to announce its financial and operating results for the
year ended 30 June 2019 (“FY19”).

In line with our strategy to produce safe, profitable ounces and increasing margins
through operational excellence and value accretive acquisitions, both annual gold
production and cash flows were boosted by the inclusion of a full year of production
from Moab Khotsong and Hidden Valley in FY19.

FY19 key features

-   17% increase in gold production to 1.438Moz, resulting in a 23% increase in
    production profit
-   2% increase in underground recovered grade to 5.59g/t
-   32% increase in revenue to R26 912 million (19% increase to US$1 898 million)
-   Moab Khotsong and Hidden Valley boost cash flow – generated R1 375
    million (US$97 million) in operating free cash flow
-   Successful hedging strategy topped up – secured cash flow margins,
    contributing R477 million (US$34 million) to cash flow
-   50% decrease in loss per share to 498 SA cents (51% decrease to 35 US cents)
-   19% increase in headline earnings per share to 204 SA cents
    (8% increase to 14 US cents)
-   No ordinary cash dividend declared for the year ended 30 June 2019 (nil for the
    year ended 30 June 2018)

Key operating results

                                             Year ended   Year ended        %
                                              June 2019    June 2018   Change
Gold produced                    kg              44 734       38 193       17
                                 oz           1 438 231    1 227 934       17
Underground grade                g/t               5.59         5.48        2
Gold price received              R/kg           586 653      570 709        3
                                 US$/oz           1 287        1 380       (7)
Cash operating costs             R/kg           439 722      421 260       (4)
                                 US$/oz             965        1 018        5
Total costs and capital¹         R/kg           544 487      499 028       (9)
                                 US$/oz           1 194        1 207        1
All-in sustaining costs²         R/kg           550 005      508 970       (8)
                                 US$/oz           1 207        1 231        2
Production profit                R million        6 588        5 356       23
                                 US$ million        465          416       12
Exchange rate                    R/US$            14.18        12.85       10

¹ FY18 excludes investment capital for Hidden Valley
² Excludes share-based payment charge

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Key financial results
                                          Year ended Year ended           %
                                           June 2019  June 2018      Change
Basic loss per share          SA cents          (498)    (1 003)         50
                              US cents           (35)       (72)         51
Headline earnings             R million        1 067        763          40
                              US$ million         75         58          29
Headline earnings per share   SA cents           204        171          19
                              US cents            14         13           8

“I wish to extend my personal, heartfelt condolences to the families,
colleagues and friends of the employees who lost their lives in mining
accidents in FY19. Together with each and every employee, my aim is to
ensure safe production, by preventing fatalities and embedding a proactive
safety culture. It is important that every employee returns home each day
- both safe and healthy”, said Peter Steenkamp, chief executive officer.

 “Throughout FY20, we will continue to focus on producing safe, profitable
production, pursue safe, value accretive acquisitions and strengthen our
cash flows. Value - rather than volume - will translate to shareholder
returns in the long term”, Steenkamp concluded.

FY20 group production and cost guidance

In the next financial year, we plan to produce approximately 1.46Moz at an
all-in sustaining unit cost of R579 000/kg.

This short-form announcement is the responsibility of the board of
directors of the Company (“Board”).

Shareholders are advised that this short-form announcement represents a
summary of the information contained in the full announcement (results
booklet) and does not contain full or complete details published on the
Stock Exchange News Service (“SENS”), via the JSE link and on Harmony’s
website (www.harmony.co.za) on 20 August 2019.

The financial results as contained in the condensed consolidated financial
statements for the year ended 30 June 2019 have been reviewed by
PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion

Any investment decisions by investors and/or shareholders should be based
on a consideration of the full announcement as a whole and shareholders
are encouraged to review the full announcement (results booklet), which is
available for viewing on the Company’s website referred to above and via
the JSE link.

The full announcement (results booklet) is also available for inspection
at the registered office of the Company, Randfontein Office Park,
Randfontein, 1760, Corner Main Reef Road/Ward Avenue, Randfontein and at
the offices of the sponsors, JP Morgan. Inspection of the full
announcement is available to investors and/or shareholders at no charge,
during normal business hours from today, 20 August 2019, until 27 August

Copies of the full announcement (results booklet) may be requested from

                                                                              Page | 2
The JSE link is as follows:

In addition, the company wishes to notify shareholders of its Broad Based
Black Economic Empowerment report included in on pages 96 to 97 in its
integrated annual report which is available on the company’s website at


For more details contact:

Lauren Fourie
Investor Relations Manager
+27(0)71 607 1498 (mobile)

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

Johannesburg, South Africa
20 August 2019

J.P. Morgan Equities South Africa Proprietary Limited

                                                                            Page | 3

Date: 20/08/2019 07:05:00
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