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Harmony realises highest ever quarterly revenue
· Received numerous industry safety awards at 2016 MineSAFE
ceremony
· 10% increase in gold production
· Production profit of R1.4 billion (US$97 million)
· R850 million (US$60 million) free operational cash flow
· 51% decrease in net debt from R1 083 million to R528 million
(49% decrease from US$74 million to US$38 million)
· R5.25 billion recorded in revenue – highest ever per quarter (US$374
million)
· Hedges realise R240 million (US$17 million) in profits
Johannesburg: Thursday, 10 November 2016. Harmony Gold Mining
Company Limited (“Harmony” and/or “the Company”) today announced its
production results for the first quarter ended 30 September 2016 of the
financial year 2017.
“We had a very good start to the new financial year, with increased
production, even stronger cash flows and a quarter in which we returned
money to shareholders by way of a dividend. In support of our strategy to
grow and improve the quality of our ounces, we acquired the other half of
the Hidden Valley mine in Papua New Guinea (PNG) and submitted the
special mining lease application in support of the Golpu project”, said Peter
Steenkamp, chief executive officer of Harmony.
Harmony recorded its highest ever quarterly revenue of R5.25 billion, a 9%
increase quarter on quarter (16% increase to US$374 million). The
operations generated positive free cash flow of R850 million (US$60
million), allowing us to reduce net debt by 51% from R1 083 million to
R528 million (49% decrease from US$74 million to US$38 million), after
paying a dividend of R218 million (US$16 million).
Cash operating costs for the September 2016 quarter increased by 12%
quarter on quarter in Rand terms (19% increase in US dollar terms), mainly
due to an increase in labour costs (bonuses and annual wage increases)
and higher electricity costs (winter tariffs).
“Safe gold production – combined with higher gold prices – means
stronger margins. Our commitment to our stakeholders is to ensure that
we meet our safety and production targets. We are on track to achieve our
annual production guidance of 1.05Moz”, Peter Steenkamp added.
Issued by Harmony Gold Mining
Company Limited
For more details, contact:
Marian van der Walt
Executive: Corporate and Investor
Relations
+27(0) 82 888 1242
Corporate office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
Listing codes:
JSE:
HAR
NYSE: HMY
ISIN no:
ZAE000015228
Registration no: 1950/038232/06
Sponsor: J.P. Morgan Equities South
Africa Propriety Limited
Harmony Gold Mining Company Limited
(Harmony), a world-class gold mining and
exploration company, has operations and
assets in South Africa and Papua New
Guinea (PNG). Harmony, which has more
than 60 years’ experience in the industry, is
the third largest gold producer in South
Africa. Our assets include one open pit mine
and several exploration tenements in PNG,
as well as 9 underground mines and 1 open
pit operation and several surface sources in
South Africa. In addition, we own 50% of the
significant Golpu project in a joint venture in
PNG.
The company’s primary stock exchange
listing is on the JSE with a secondary listing
on the New York Stock Exchange. The bulk
of our shareholders are in South Africa and
the United States. Additional information on
the company is available on the corporate
website,
www.harmony.co.za
.