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Trading statement and operating update for the financial year ended 30 June 2025
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")
Trading statement and operating update for the financial year ended
30 June 2025 ("FY25")
Johannesburg. Monday, 25 August 2025. "As Harmony marks its 75th
anniversary, FY25 stands out as our tenth consecutive year of meeting
guidance - a testament to a decade of operational discipline and
consistency. We delivered group production of 46 023kg (1 479 671oz),
landing towards the upper end of our guided range, driven by robust
contributions from our high-grade South African underground operations
and the Hidden Valley mine in Papua New Guinea.
Recovered underground grades improved by 3% to 6.27g/t, exceeding the
upwardly revised guidance of 6g/t, supported by an exceptional
performance at Mponeng. Through disciplined cost management, we
maintained all-in sustaining costs (AISC) at R1 054 346/kg (US$1 806/oz),
comfortably within the guided range of R1 020 000/kg to R1 100 000/kg.
Our strategy remains firmly centered on value enhancement over volume
growth through safe, profitable ounces. By allocating capital to higher-
margin, lower-risk assets and prioritising quality ounces over output,
we continue to strengthen margins, improve portfolio resilience, and
enhance long-term returns.
Gold remains at the core of our business, underpinning our identity and
long?term value proposition. Copper, however, will be a key enhancement
and catalyst for future earnings growth - providing diversification,
supporting the global energy transition, and helping to secure robust
cash flows across commodity cycles. By integrating copper into our
high?margin portfolio, we strengthen our ability to generate returns
through both favourable and challenging market conditions. We have a
proven track record of delivery and a clear plan to enhance portfolio
quality. With safety, operational excellence and effective capital
allocation as non?negotiable foundations, Harmony is positioned to create
enduring value for all stakeholders," said Beyers Nel, CEO of Harmony.
Expected basic and headline earnings for FY25
Shareholders of Harmony are advised that a reasonable degree of certainty
exists that basic earnings for FY25 will be higher than for the financial
year ended 30 June 2024 ("the previous comparable period" or "FY24")
primarily due to:
• an increase in group revenue as a result of continued operational
excellence and a higher average gold price received. The average gold
price received increased by 27% to R1 529 358/kg (US$2 620/oz) from
R1 201 653/kg (US$1 999/oz)
• no impairment recognised on assets during FY25 due to headroom shown
on all assets compared to R2 793 million (US$154 million) impairment
in FY24.
The increase in earnings was partially offset by the following:
• an increase in production costs mainly due to inflationary increases
on costs including labour, contractors, consumables and electricity;
• the royalty expense increased due to a higher rate being applied due
to higher profits, as well as the increased revenue base to which it
is applied;
• an increase in the taxation expense of approximately R3 500 million
(US$200 million), of which approximately R1 750 million (US$100
million) relates to current taxation. The increase in current taxation
was mainly due to higher profitability resulting from continued
operational excellence and the increased gold price received. The
remainder of the increase relates to deferred taxation, reflecting the
change in temporary differences as well as the impact of changes in
deferred tax rates applied for the majority of the group's South
African mining companies.
Consequently, earnings per share ("EPS") are expected to be between 2 180
and 2 450 South African ("SA") cents per share, which is an increase of
between 57% and 77% on the EPS of 1 386 SA cents per share for the
previous comparable period. In United States ("US") dollar terms, the
earnings per share is expected to be between 120 and 132 US cents per
share, which is an increase of between 64% and 81% on the profit per
share of 73 US cents per share reported for the previous comparable
period.
Headline earnings per share ("HEPS") are expected to be between 2 190
and 2 500 SA cents per share, which represents an increase of between
18% and 35% from the HEPS of 1 852 SA cents per share reported in the
previous comparable period. In US dollar terms, the headline earnings
per share is expected to be between 121 and 137 US cents per share,
which is an increase of between 22% and 38% on the HEPS of 99 US cents
per share reported for the previous comparable period.
Harmony will publish its financial results for the financial year ended
30 June 2025 on Thursday, 28 August 2025. Please see Harmony's website
for more details: www.harmony.co.za.
The financial information on which this trading statement has been based,
has not been reviewed or reported on by Harmony's external auditors.
For more details, contact:
Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120
Johannesburg, South Africa
25 August 2024
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
FORWARD-LOOKING STATEMENTS
This market release contains forward-looking statements within the
meaning of the safe harbour provided by Section 21E of the Exchange Act
and Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), 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 forward-looking statements, including, among others, those
relating to our future business prospects, revenues, and the potential
benefit of acquisitions (including statements regarding growth and cost
savings) wherever they may occur in this market release, are necessarily
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 our integrated annual report. All statements other than
statements of historical facts included in this market release may be
forward-looking statements.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and should be
considered in light of various important factors, including those set
forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements. 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; the impact from, and measures taken to address,
Covid-19 and other contagious diseases, such as HIV and tuberculosis;
high and rising inflation, supply chain issues, volatile commodity costs
and other inflationary pressures exacerbated by the geopolitical risks;
estimates of future earnings, and the sensitivity of earnings to 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 gold and other metals
prices; estimates of provision for silicosis settlement; increasing
regulation of environmental and sustainability matters such as
greenhouse gas emission and climate change, and the impact of climate
change on our operations; estimates of future tax liabilities under the
Carbon Tax Act (South Africa); statements regarding future debt
repayments; estimates of future capital expenditures; the success of our
business strategy, exploration and development activities and other
initiatives; future financial position, plans, strategies, objectives,
capital expenditures, projected costs and anticipated cost savings and
financing plans; 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, and the ability to successfully integrate, past and future
acquisitions, as well as at existing operations; our ability to complete
ongoing and future acquisitions; fluctuations in the market price of
gold and other metals; the occurrence of hazards associated with
underground and surface gold mining; the occurrence of labour disruptions
related to industrial action or health and safety incidents; power cost
increases as well as power stoppages, fluctuations and usage constraints;
ageing infrastructure, unplanned breakdowns and stoppages that may delay
production, increase costs and industrial accidents; supply chain
shortages and increases in the prices of production imports and the
availability, terms and deployment of capital; our ability to hire and
retain senior management, sufficiently technically-skilled employees, as
well as our ability to achieve sufficient representation of historically
disadvantaged persons in management positions or sufficient gender
diversity in management positions or at Board level; our ability to
comply with requirements that we operate in a sustainable manner and
provide benefits to affected communities; potential liabilities related
to occupational health diseases; changes in government regulation and
the political environment, particularly tax and royalties, mining
rights, health, safety, environmental regulation and business ownership
including any interpretation thereof; court decisions affecting the
mining industry, including, without limitation, regarding the
interpretation of mining rights; our ability to protect our information
technology and communication systems and the personal data we retain;
risks related to the failure of internal controls; the outcome of pending
or future litigation or regulatory proceedings; fluctuations in exchange
rates and currency devaluations and other macroeconomic monetary
policies, as well as the impact of South African exchange control
regulations; the adequacy of the Group's insurance coverage; any further
downgrade of South Africa's credit rating and socio-economic or political
instability in South Africa, Papua New Guinea, Australia and other
countries in which we operate; changes in technical and economic
assumptions underlying our mineral reserves estimates; geotechnical
challenges due to the ageing of certain mines and a trend toward mining
deeper pits and more complex, often deeper underground, deposits; and
actual or alleged breach or breaches in governance processes, fraud,
bribery or corruption at our operations that leads to censure, penalties
or negative reputational impacts.
The foregoing factors and others described under "Risk Factors" in our
Integrated Annual Report (www.har.co.za) and our Form 20-F should not
be construed as exhaustive. We undertake 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. All subsequent written or oral forward-looking statements
attributable to Harmony or any person acting on its behalf are qualified
by the cautionary statements herein.
Any forward-looking statement contained in this market release has not
been reviewed or reported on by Harmony's external auditors.
Date: 25-08-2025 03:55:00
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